I figured lowest money out of pocket was the best way to go, and in this case FHA would provide the lowest downpayment.

You said, "I'll have to put in extra of my own money for reserves..."

I agree that the best way to make money is self manage your short term rental (not AirBNB, that is a platform).

Borrowed money from friends and family to pay cash for the property as the bank would not finance it until it had been remodeled, made livable, and brought up to code.

I know one person that did this recently and was able to negotiate no money down and 12% over 5 years but this was probably in the mid west.

A traditional bank will not give a line of credit even if there is significant equity because it boils down to being able to pay back the money. 

Purchase price: $187,000 Cash invested: $15,000 Sale price: $259,000 I got tired of moving place to place and worrying about finding roommate, security deposits and not having enough money to deal with maintaining someone elses home.

NO THE ASSIGNMENT FEE IS NOT YOUR MONEY.

We upsell 3-to 4 simple packages that guests love; I have trained my cleaners to handle them (they make extra money), my VAs help schedule it with cleaners, and we still make a 50% profit margin on everything.

I was losing money every month and was done managing the property.