You made the choice to buy a $35k property... that's incredibly cheap in today's market.

@Jason Smith First point of feedback, there’s not a choice between Sch C or Sch E.

It is their choice to go home for the summer. 

Are there ways to look at these choices that go beyond the tax implications?

Some top choices include Midlothian, Cedar Hill, Grand Prairie, Garland, Irving, and Arlington.

Giving them the 3 choices you noted above should be helpful and keep you on good terms with them.

I'm not as plugged into primary rates (vs. investor/DSCR) but there are a lot of HELOC / Closed End Seconds out there that are becoming very popular alternatives (especially if you already have a low rate mortgage) instead of full cash-out refinances and jacking up rate on all the debt

For the record, I am not in West Gulfport as it says, but since there are only 2 town choices to choose from the dropdown in Mississippi, there you have it. 

I have also noticed Manufactured and Modular homes have become very popular due to the current Florida market and over priced homes.I have had a big uptick in buyers reaching out for help on vacant lots and putting in a new Double or Triplewide Manufactured. 

But if the area is popular enough, even residential may be a good use for the site.