I don't think those are bad things and sometimes the personal decision for your ideal life outweighs the "conventional hold forever" decision.You have options, that's the best place you can be.

I would hesitate to say 1-2 years to rotate out but closer to 5 years, and ideally I'd try to get the downpayment higher to at least 10%.I understand your areas though-- they're expensive.

Ideally, we'd like to acquire one or two duplexes that meet the 1% rule and provide us with $1,000–$2,000 USD per month after property management fees and other expenses.

Ideally I wanted to live in Lake View as that's my dream neighborhood, but I just didn't have the funds/income.

First, define your goals know your target cash flow, ideal property type, and budget.

@Angelo CortezYou can still deduct, however STRs are reported on Schedule E, not Schedule C.The IRS expects you to file 1099s even without SSNs - which I personally always found to be puzzling.

I have 100k cash savings and ideally would like to keep the investment properties.

Some carriers don't ask but you should make sure that you're not indicating (in the policy application that is typically e-signed) that you aren't using your property for student housing if you are.  

In playing with the numbers a bit, I'm seeing a trend of atleast 2% rent to price and (ideally) < 7% mortgage rate needed to achieve a decent cash on cash rate.

As far as credit, you would want a score above 680 ideally to get the highest loan to value on a cash out refinance, but I would aim higher at 720+ as that comes with a significant rate drop.