As my wife is a realtor, we’ve helped several people from Bigger Pockets find their second home/STR.

When it comes to insurance displacement, it's like a lottery ticket as you'll need a home that matches the guest insurance policy coverage ie.

Rent out your current home.

The fact that you have built custom homes together with your general construction experience should be enough.

After building a portfolio of fully renovated homes I wanted to give this model a chance.

Purchase price: $990,000 Cash invested: $350,000 Purchased this home with my former partner back in 2018 and we put 200k down.

We could build larger, but there will be less Buyers and the home can potentially sit for longer and holding costs get expensive.Not saying building larger is wrong, but just giving you our reasoning for our home size.But I do 100% agree with you. 

Buy a 2-4 unit, close to home.

I went the owner occupied route on my first 3 homes.

I had homes built in Florida and it took almost a year once all approved.