Your credit, investment history and bank statements will likely be evaluated and you'll need to personally guarantee the loan, but you can close under your LLC.

Tornado, wind, hail, flooding if in a low spot, general weather related.

The median income is low but the amount of renters is high.

I don't like it I have to be honest - I think part of the reason you're cashflowing is the low interest rate and relatively high downpayment.

I could see fully comping 1-2 nights at low season rates, particularly if one doesn't have a lot of reviews yet, but would you, as an established host with tons of reviews, comp a full week or more of a prime season stay? 

Low income choosing high occupancy to stay here.  

The problem is these homes are 60-120 years old and because of the low value neighborhoods, nobody has ever made any capital improvements beyond duct tape.

Some of these renters are capitalizing on low interest rates and choosing to buy, but many are unable to buy due to lack of down payment or credit factors. 

If it's related to nonpayment of rent, the changes they appeal is very low. 

I think the dead giveaway is the rate and points. 5% is too low for anyone to lend now.