I keep hearing that costs of labor and supplies are rising (when aren't they?)

It is about supply and demand. 

As Mitch pointed to, on one hand, STRs are housing supply locally and will likely get looked at. 

They have a balloon payment for the principal due in 10 years.

You need to avoid certain high risk features, which include balloon payments within 5 years, excessive fees, validate that the borrower has the ability to repay the loan, make sure they are likely to repay the loan based on their credit history, excessive late fees, long loan terms, etc, etc. 

You can find some absolute MTR gems near smaller hospitals that aren't so obvious but ultimately, housing supply in the area is something I'd say is more important coupled with your amenities.

Depending on the number of jobs and number of new development going on in the area it may just be simple supply and demand.

🏡 Real Estate Market Report (Single-Family Homes)📊 Mortgage Rates:30-Year Conventional: 7.10%30-Year VA: 6.45%💰 Median Sales Price:October: $485,000November: $484,995December: $484,500📈 New Listings:October: 1,959November: 1,498December: 1,175📅 Median Days on Market:October: 22 daysNovember: 24 daysDecember: 29 days📦 Months Supply of Inventory:October: 3.3 monthsNovember: 3.2 monthsDecember: 2.7 months🤔 What Does "Months Supply of Inventory" Mean?

These loans are short-term as you mentioned, typically 12 months, so you'll need to refinance before that balloon comes due.

What I find to be most valuable: Ease of use, cost-savings and efficiency and here's what I mean: If using an interior designer to furnish your rental, they will hand you a list of supplies + furniture to buy and what I was able to do with Minoan is upload that list as a CSV file and then they come back with a quote of all of the items they can fulfill along with their respective discount.