I did run a few options through the HML company and was optimistic about the possibility of doing a "no cash out of pocket" deal, but the property sold yesterday in an auction (which was not disclosed to the public on the MLS site). 

Most private lenders are overly optimistic because they haven't been though a down cycle.

If Spokane County doesn't enforce limits on the number of days a house can be reserved or put extra taxes on Airbnb in the future (which is highly optimistic thinking), I will continue using the short term rental platform considering I can hit market rent by utilizing only half the days in a given month.

New home sales surged in March, beating even the most optimistic forecast by any economics group as buyers excitedly re-entered the market following a temporary pause in activity in February (due to severe winter weather across the US).

I'd bet dollars to donuts he's giving you an inflated or overly-optimistic ARV.  

Yeah, the lenders may have been overly optimistic about their ability to repay the loans and should have never made the loans. 

Stay optimistic.

Also I'm new and inexperienced, but optimistic!

Maybe I can rent someone's hound dog to sniff out the offending areas, but I'm not optimistic on that. :) The floors are nice and I'd like to not have to replace the whole first floor of them.

Welcome aboard @Breanna CameronI like to watch the herd run off then go the opposite direction.Stay optimistic and try to create your own luck via doing the work (and saying your prayers).I like your strategy - It's how we started (less the kid).