I am thinking to switch to online rent collection from receiving checks in the mail, but worried that receiving 1099k will increase the complexity during tax filing time.

I was told by Wagner that the builder is trying to refinance the construction loan as the cost of construction has increased. 

I would also recommend increasing your liability coverage to at least $2M.

And over time, as those assets to make our product we sell had a fixed price, the dollar does not sit fixed, our cost of product increases meaning increased cash-flow.

As rental rates increase, cash flow becomes strongly positive.  

I will be sure to increase my rice in the future!

Rents have increased significantly but so have housing prices. 

We signed P&S agreements on 6 different properties totaling 20 units approximately 8 months ago and received a call today that the price we thought we were buying at has to-be increased on average 13% due to the increased cost of construction.

But ...The first thing I observed was the replacement cost portion of the quote, was, IMO, less than what it will actually cost to demolish the remains of the existing structure, pay for any hazardous waste removal following a catastrophic loss, and actually pay to replace the property in the event of a total loss, even though I used the quote feature to increase the replacement cost value by 20% (the maximum it would allow).

Just make sure you are saving towards those slow months during the peak months, buy a deal at the right price (don't overpay just because its a turnkey STR or you think it will make more money than projected), and look into ways to increase bookings during those slow months with some marketing and operation tweaks.