What you can learn from this and show them can set them up for life.  

If you are new, be sure you can raise the funds before proceeding.In my opinion, you are going to have a hard time raising money with a 6% pref and 70% of the profits after that unless you have a lot of newbie investors in your Rolodex. 

Not sure if you have another property manager lined up but check out Rental Guys Property Management.

Currently active STR Lessons learned?

Yes, valuable lesson learned.

Not sure what the demand drivers are. 

You seem to know a lot about STR, could I "connect" with you to maybe learn a bit more about it?

(not sure on state law but this probably is a tough sell)4.

If it is that good of a deal, I would go down to the county office and speak with them to learn the process and the timing it takes to get a permit. 

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.