Due to assumption they will be more a draw and negative than a resource. 

You are making a lot of assumptions on accessibility and ease of install.

This article makes some very strange assumptions.

Beyond that, it would be defending all your assumptions with market data.  

In your case, based on your assumptions, you’d reach around 384k, which is in the right range.

(My assumption is it may be tough to prove enough material participation if using someone local to manage.)Two things worth noting:1- I'll be discussing with my CPA in-depth soon, but would like to hear other's experiences on this.2 - The main reasons I'm looking to STR's is the tax benefits (Cost-Seg) & appreciation that comes with buying in these areas opposed to the mid-west where I look for long-term rentals..

Your making 2 very big, and I assure very wrong, assumptions here. 

You have too many assumptions in there.

So, insurance premiums are getting VERY expensive.Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

My go/no-go was break even (net 0 cash flow) under the following assumptions: 50% occupied at market rent (based on comparable properties) including 15% of gross rents to maintenance/cap-ex (at 100% occupancy) and utility costs.