I'm looking for recommendations based on your experience with insurance companies that cover STRs in this area or other mountain markets that are comparable. 

So you’ll want to ensure your cash flow can cover the additional monthly note (assuming you still have a loan on them from the pre/during-Covid acquisition dates.)

Later, we stripped off the old patterned wallpaper inside the house and saw that the walls were covered in water stains.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

It would be a "DSCR" loan in the sense that it would need to debt cover, but not the same formula as the 1-4 units (rent/PITI).

If you do find a deal and maybe it doesn’t cash flow for the first year or 2 but you can make improvements, raise rents on under market leases, manage property effectively and cover your expenses at least you will have started and can look for better cashflow over time.

Roast my data or give me some advice :)  Sam, I got you covered.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

When I purchased this property, I used my HELOC to cover the 25% down payment.

If you have a high return on equity, then you are more likely to be making high revenue relative to your existing payment, which means you would be more able to cover the higher payment of a cash out refi and would then have cash to deploy.