You also mentioned an unpaid water bill, so be sure to deduct any outstanding balance from that bill as well. 

I am currently going to community college as well as in the process of getting my real estate license.

I have already sold by owner and am well aware of 1031.

@Stephen FlemingFrom my experience working with over 400 investors, your strategy of leveraging a low mortgage rate, tapping into home equity, and diversifying with a short-term rental (STR) in Northern Michigan is well thought out.

The other hurdle is to find a contractor, that is something that you can do as well.

American Banks (like BofA and Wells) actually did lend in CR pre-2008 but that possibility disappeared after the crash.

Verizon is like $35/mo and Spectrum is well over $100 now.

I was planning on shorter term rentals as I have a family member who comes for 2 months in the summer, but I assume a landlord policy would cover that as well.   

It’s super important you prioritize the end product: something that gets the job done well as an STR.  

The best projects I've seen from my desk are folks who are doing hyper-targeted, well-researched deals that are generally in higher cost of living (there are exceptions) areas.