A two bedroom 1,300 sq ft cabin is going to go for way less than a 2 bed, 2,400 sq ft cabin.One of the issues out there too is that some are setup as legal 2 bedroom cabins because of the septic but then they have lofts and such that allow you to rent them out as 3 or even four bedroom cabins to improve the rent.You mentioned one nearby you with a similar layout.

The problem is at $250K what are you getting each side sqft, bed/bath count etc.  

This property was also an on-market deal.The property was a 4 bed/1 bath single family house.

Quote from @Jimmy Sont: I'm looking to build around 700 sq ft 2 bed / 2 bath guest house primarily used for short to mid term rentals.

It is 4 bed/2.5 bath. 

As a two bed with office it may or may not be worth less than a 3 bed but probably.

I am also open to considering opportunities in the Riverside / Five Points neighborhood, or San Marco, in Jax.Ideally, I would like to find a livable property with 3+ beds / 2.5+ baths, make use of FHA to purchase, and rent out 2+ rooms while renovating into separate, complete units.

How is the Bed & Breakfast doing?  

It's a 3 bed 2 bath on an acre flat plot.  

For example a 6 bed rents for $4K but two two bed units might rent for $5K total.