ADR and occupancy rates will fluctuate wildly depending on the month and can be hard to compare.  

If the property is cash flowing, then it shouldn't matter when the market takes a dip because then my payments aren't fluctuating and I don't have to sell.

So, first what I'd suggest is find an Airbnb pricing tool you like and start gathering intel on the pricing fluctuations during the year so that you feed your underwriting process.

Lack of Diversification: They may put all their money into a single property or type of real estate, leaving them vulnerable to market fluctuations.7.

However some experts I know are predicting a rate spike coming up even tho its fluctuating up and down these days, last i checked from Fannie and Freddie.

The current landscape of interest fluctuation scares me a bit but since cash flow is positive and NC beaches are extremely popular despite economic disparity nationwide, im itching to go after this deal.

The annual price fluctuation will benefit you.Negotiate some commission split with the agent, if you can.

Challenges include finding a lender familiar with IUL, meeting credit score requirements, affording fluctuating payments, and planning principal repayment.

I do have a fear that these high LTV Loans can present increased risk of foreclosures for market price fluctuations that are not that extraordinary.  

The problem is you have to work much harder to get people to pay top price and any fluctuations where rent growth changes you are now in negative income growth position.