Under a normal repayment scenario, Scenario 2, the loan would still be at about $79K.

In a waterfall, the GP is incentivized to stay the course, gambling the LPs equity, because the GP only makes money above 7%. 

Normal residential BRRRR just seems very difficult right now, but I also don't wanna put 25% down on every property I buy. 

But even if you fall under the normal amount for debt coverage there is other loans like DSCR  which qualifies the propertys income and not your income.

I am assuming in this that normal cleaning was done pre-occupancy and they are excessive in their expectations.

I would just treat it like a normal deal if the numbers make sense.

In a few of the states there is either a form. you must sign or an application that your escrow closer must file in order to exempt from any state taxes or withholdings that might normally be collected at sale . 

As far as I know, it generally doesn't work in the US anymore as you describe now that interest rates have returned to a normal level.I totally agree with @Henry Clark that, if I want to invest in Italy, I want mass tourism and STRs.

Your 3% rate likely helps you with cheap debt and without the need to chase high that normal rental rates.

There are always deals out there and Texas is experiencing a return to normal with pricing coming down and supply staying up.