I'm an Asheville STR owner and a broker on the Cashiers/Highlands Plateau.

Short term rental permits are only granted to owners who will be renting their primary residence.

I almost exclusively work with investors and business owners in buying and selling in Baldwin County. 

The answer is yes, but it is generally found when the owner is also living in at least one unit (aka "House Hacking").

Larger owners tend to analyze market rents monthly or even weekly and manage rents (or incentives) the best way they can.As long as the owner is engaged, the chance of adjusting rents is higher.

When relying on LIHTC to make the deal pencil, yes developers wait BUT only if they have the resources to wait and only if the property owner is willing to not close on the property until the project is fully funded.

Very few non-owner occupied property policies guarantee full replacement cost - they typically provide replacement cost up to the dwelling limit purchased. 

It is a family owned property of which I am one of the co-owners.

I’ve built strong relationships with agents, contractors, and other investors in the area, and one of my contacts informed me that the owner was considering selling but hadn’t listed the property yet.

I believe it is over priced (originally for sale by owner for $280k,later listed through agent at $360k), but I feel like the seller may be open to a creative financing option.