But if you spend 100K and all of the properties are ultimately redeemed you make a big fat ZERO dollars.

Use the STR calculator here on BP to see if it a lucrative market or over saturated and too competitive to make it without using a bigger platform to host it. 

Then the home was always used as a residence from time of purchase up until the last 2.5 years or so, which is NOT to be included as "non-qualified use", so the "Home" version should have 0 non-use days by the days owned, making my non-residence factor a big fat 0%, which multiplied by the gain makes my non-qualified use gain another big fat $0, meaning that my gain that is eligible for exlusion is 100%!!!!.......

If you want the best coverage in case something happens, call an independent agent and tell them you want a policy with Chubb...then be prepared to write a big fat check for that premium.As Dave Ramsey used to say, drive into any major city in the US and look at the names on the largest buildings downtown...usually either an insurance company or a bank, or both.

Prices are too high and the market is too saturated! 

Galveston will take getting a screaming deal to make sense to me with the rates and saturation there. 

There is so much inventory that owners are turning to annual rentals and now that market is completely saturated.

A saturated and expensive market. 

That tool really sounds ideal...I think in most major markets now that are either saturated or balanced in terms of supply/demand now more than ever amenity rich properties are a must. 

Market saturated with 3 or 4 bedrooms, a 2 bedroom may be ideal.