This money gets added onto the back of the loan kind of like a VA funding fee does. 

Treat this property as a business and factor in all the associated expenses, including mortgage payments (if you pull a loan), maintenance, and potential vacancy periods.To simplify management and make this less of a hands-on job, I’d strongly recommend working with a property management company.

Thank you so much for your insights, I already have a company in mind but if things go south you may hear from me sooner than not.  

A lot of insurance companies do like the co-living model.

We're still using the company she recommended.

In my case, I have residential rentals in one LLC, commercial properties in another, self storage in a third, and my real estate company operates in a fourth.

Always keep record of where you told your insurance company that the property was being used for STR.

When I first began, working with a property management company, they asked me to provide (and list clearly) the starter set that came with the house.

I know that I have to rely heavily on a solid property management company to not only maintain but to help find me deals as our relationship grows.

Our primary residents also has some equity, I have a HELOC with $166,000 available funds.