If so you should be able to cancel but if you are doing it out of the inspection period you are stuck and could run the risk of losing your earnest money if you put any down. 

That being said, I had to translate a lot of documents on my own for the loan process, so there was more effort involved.

My strategy incorporates asset protection measures like LLCs, specific trusts as well as professional property management to spread risk and ensure quality operations.As well as using tax codes to my benfiitSection 179, IRC Section 162, Cost Segregation and Bonus Depreciation and later 1031 them out for larger projects. 

I think hard money lender to take this risk cannot legally charge appropriately which means the law is working against you (the law meant to protect owner occupied owners from unfair loans).I agree with @Jay Hinrichs that your best option likely is to sell on the mls.  

What are the key risks or potential pitfalls in this strategy?

Anything that involves a load bearing wall will generally need an architect IME, but it can also be required (maybe indirectly) through the jurisdiction's building code/enforcement.Got it, thank you for lending your expertise!

Take your time, be wise, and time will reward you. agree 100%. you have people here on BP who have been in real estate for 20+ years and always talk about the risk and how hard it is - and then you have people who will tell you that after a weekend of a month you can make six figures in real estate. 

If you want to build equity quickly, some level of hands-on involvement is key.

Since you're in Destin, you might want to check with local firms that have experience with STR-heavy communities, as they’ll be familiar with the risks and requirements.

If not rented at fair market rent, this property will just count as your residence, not a rental for tax purposes.Structuring the property under an LLC or land trust could trigger a due-on-sale clause, so check with the lender before proceeding.To minimize risk, consult a CPA for tax strategy, weigh financing costs, and draft a legal rental agreement.