You are a high w2 earner, The house is worth 110k today, you are buying from your grandma for 60k in exchange for free rent for life, upside ARV of 200k.The costs of owning the house will help provide tax relief on your high w2 earnings, you are buying a great chunk of equity that will pay off in the future, and you and your grandma are doing each other solids. 

What stage in life and in investing are you are questions I think you should ask yourself to get a clear picture.

So here's a real life  question. 

And since I would like to go back to it being a STR when some of my life calms down in a year or 2, it doesn't make tons of sense to get rid of it all and then start again!

I've done it twice in Reno, NV and it's changed my life. 

The old adage is true in real estate as other aspects of life - if it seems to good to be true it probably is. 

It really does depend on timing of being put in service, that bonus it qualifies for (if any) and the life cycle of the elements that can be advanced. 

With a 3-5% down FHA loan, I snagged a cozy home in a hot spot, worked from home to play handyman, and created a hedge against the "what-ifs" of life.

Don't make your life more complicated than it has to be.

I faced numerous hurdles and stressful moments, but I persevered and built a successful approach.To tackle this challenge, I recommend starting early by building relationships and seeking investors.