We chose this area and home because of the redevelopment in the area, increasing values, proximity to major venues like Lucas Oil and Gainbridge Fieldhouse.

Quote from @Scott Bloom: You can get a commercial grade policy from major carriers where they lump the risk across multiple properties into one policy, reducing your premiums.  

The most profitable option is Airbnb, the most passive is long-term room rentals, and a hybrid approach can balance both.

Everyone is telling me that the majority of the time they dont take the LTO to term.

If they are putting the property in major outlets including WSJ, NYT and sharing the property all over then sometimes its better to pay an extra point, but the 6% is for both buyer and seller.

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Check their nightly rate, occupancy and amenities.That will give you a pretty good idea of need and profitability.

Here are my two cents...I recommend starting in a market with strong fundamentals, such as steady population growth, an influx of major corporations or large businesses relocating to the area, an affordable cost of living, and high rental demand.

The vast majority are scams. 

What you'll find is that the better sponsors are likely to have a lower return to LPs because they present less risk and are rightfully keeping more of the profits for themselves.