Of the many strategies I've looked into, House-hacking and short-term rentals piqued my interests. 

If that's the case, you should be able to rate/term refinance at ~75% LTV with a DSCR loan, and with some interest-only basis, your payment will go to ~$850 (based on ROUGH pricing TODAY).

Hey @Raven Ye Mahar, so you should call the city and make sure but if you are renting it long term, you shouldn't be on the hook for any of the occupancy taxes.Nashville has a STR Occupancy Tax - https://www.nashville.gov/departments/finance/office-treasur...In the end, I would just call the city and get the deets that way. 

Long term, your property is going to up in value; likely way up.

Their lease is 6 month term with a same rate month to month however, their insurance states the rebuild of their home and fire investigation efforts are going to take 12-18 months. 

I give them a deadline to respond, very clear terms of how we will move forward with the option they choose, and I make it clear this is my final offer.

New primary mortgage will be about $2500 a month, old house that I will rent out long term is $1000 a month.

Our main carrier policy converts to vacant dwelling policy at completion for duration of term and can be renewed on case by case basis if unfinished or unsold.  

If you ever see someone offering terms that are too good to be true, you might as well just post your SS# and banking information on IG.

Really only makes sense as @Chris Seveney mentioned if you have a solid, long term relationship with the seller and you are doing a very high volume rehabs