Which makes my answer, as opposed to yours, applicable.Especially since I qualified mine by adding "...unless she adds more real estate work"Your argument reminds my of an old joke:- Doctor, will I be able to play violin after this surgery?

I have more than 20k to play with, just looking for ideas for best use. 

I always play it straight on loan applications for they can be enforced for 10 years from signing. 

Well I have seen this come into play - I had someone who has a note in florida that was a non-owner occupied loan and the lender claims the borrower failed to make payments on this and attempted to record the deed in lieu.

As others have alluded to, buying larger units or a house near the beach is a better play. 

You need to remember that, hopefully, this is a long-term play for you, so work with a trusted STR designer (I have great recommendations), and spend the money upfront so you can be the most successful in your area.

And if/when ready to liquidate some and step up into bigger $ play where it can be a win-win. 

Down payment amount varies and more you put down the highre you will be in the queue of applicants, also down payment varies per your credit...Dodd Frank IS in play!!

Play Opossum ".... help, I'm some corporate slave just feeling life slipping away in my 9-5 but I do make hundreds of thousands of dollars per year I just have nothing to do with, WHAT SHOULD I DO"..... 

If your tenant has been playing these "schemes" then likely they've done this with the previous landlord and gotten away with it - so I hope you bought the property for a good price in order to account for this potential headache.