I will say that even though you get the boost from VRBO and AirBNB, the first year of operation is usually lean as you build up the rep.Offering a discount on the stay is a way to be more attractive but don't go crazy.

We then export this data into an Excel spreadsheet to review metrics such as average occupancy, daily rates, and annual revenue for that specific property type and location.We'll also look at the top-performing properties in the area and analyze the amenities they offer, their location, proximity to attractions/beach etc.

Alternatives include seller financing, a lease option, or using an LLC or trust to structure the deal while maintaining tax benefits.

What seems most attractive for now seems to be multi-family markets starting out and eventually moving into 5-20 unit properties for growth. 

This affordability attracts buyers seeking value, especially those priced out of more expensive regions.3.

Specifically, must this be a commercial/business loan type where you have higher rates and shorter loan life or is there an alternative loan type? 

There are alternative programs out there with reduced cost, but you are typically looking at 20% down. 

Is anyone else aware of reasonable alternatives?

Your long-term income depends on whether the investment city attracts new companies that create replacement jobs with similar wages and skill requirements.

I agree with @Murali Jesudoss, I had pulled back from investing when things got super crazy in the last year or so, but I believe things are stabilizing and deals will start to become more attractive.