I feel like that's a reasonable thing to ask before making an offer because that will affect the cash flow significantly. 

Option 2 with second lender is, get an FHA loan at 3.5% and use the concession to buy discount points and bring a 6.2% interest rate down to a 5.4% permanent buy down, putting me at around $3,450.00 monthly PITI and also adding 8k to the top of the loan for mortgage insurance.

Don't bring them as equity partners, as you will have to file a partnership return. 

This is especially true if you start bringing in a strangers pet.

Knowing this information will help you identify the right professionals to bring on board.At minimum, your team team should include:Financial Advisor: to help with investment strategies - portfolio diversification and risk management.Real Estate Agent/Broker: to help with property acquisition and market analysis.Accountant or Tax Advisor: to help manage financial records, tax planning, and optimization.Attorney: to provide legal counsel for contracts, agreements, and investment structures.Mentor or Coach: to offer guidance, insights, and industry knowledge.Networking and Relationship Builder (for everything else you will need): to connect you with potential partners and collaborators.

Best of luck to you working through the renovations - if you need any design advice, feel free to reach out!

It will bring you joy and not a return on an investment.

I turned it into a 7 bed house.2 of the new rooms are super useful to an end buyer and would bring us to a total of 5 (which would comp very well).

Are people holding on to their money or are they feeling good about the future?  

Most of these 12+ cabins bring in $150K to $300K+ a year so while it sucks to shell out $20K to $35K it shouldn't hurt as bad as if it were the cabins bringing in $30K-$80K a year.