Hey Nicholas, what type of loan product are you requesting in this case?

Another concern I would have is that if we enter into an economic situation where tourism declines and foreigners stop buying expensive second homes there, you could get stuck with a property you can’t sell that isn’t producing much income. 

Also seems like this lender is trying to swap the DSCR loan rate issue to the property tax & insurance issue to make their product look better.BTW: we're in the Midwest and believe it offers better opportunities than TX market, but one shouldn't have to stoop to this lender's tactics to show this:)

If your in a position to put 25% or more down on the purchase you can get very favorable terms on a investment product. 

Are there insurance companies that offer a product like this?

I take it there are no other VA products similar to the Vendee Loan for non-veterans looking to purchase VA Foreclosures?  

Of course, if you refinance your first VA loan into another product, that would certainly clear up the issue. 

I think it will answer a lot of your questions.https://store.biggerpockets.com/products/first-to-a-million

STR is a fun one- you'll get to have some fun and get creative with your product.

Being able to see their pricing and occupancy along with the product they are selling is more "apples to apples" and gives me an idea of what I have to do to compete.