Any expertise/advice from anyone would be great! 

This is an opportunity to confirm they have the expertise you need.

Akemi- I just read of the fraudulent auction-- I need your apparent expertise- I haven't got an invoice yet- what do I need to do????

My probate expertise is limited to the many THOUSANDS of deals that I’ve done in California since 1978.

However, what I would suggest based on your expertise as a contractor is going into a semi-fixer upper and make minor repairs to boost equity as well as savings. 

Thank you all for your advice and expertise.

STR can provide more cash (potentially), but its a high risk high reward strategy - if you invest in the furniture, staging, photos, and management or self manage, there is a lot of time and money invested.

I definitely agree that rent by the room is awesome for increasing cash flow - again, it does come with it's headaches but with the higher risk comes higher reward (I've been doing it for almost 3 years now, it's really the only way to make the numbers work with little cash down on properties).From my personal experience, talking to others at meetups, and reading this post, I think there's definitely demand for specialized rent by the room property management.

Risks and rewards to this type of tenant? 

Given your limited cash and high DTI, refinancing after boosting rents might balance risk and reward best.