That is sufficient to handle normal usage, regardless of the brand of paper used. 

However, for the strategy to be effective, clients must ensure that they meet all the IRS requirements, such as maintaining the short-term rental for a sufficiently long period and passing one of the material participation tests (e.g., 100+ hours of active participation).2.

Your primary insurance policy with $300,000 in liability coverage should be sufficient in 99.999% of all lawsuits.5.

It's a scummy thing to be doing and I personally couldn't do it and sleep well at night.

By incorporating additional collateral to secure financing, investors can enhance their security, ensuring that the asset pool remains sufficient to stay within the desired CLTV range.

Normally at minimum an appraisal is required to verify the remaining collateral is sufficient.

If you don't have the liquidity to purchase the property your other option is to finance the acquisition but how do you obtain financing when you can't even show sufficient down payment funds/liquidity on your PFS?

I would not loose 1 second of sleep over that decision.  

The lender assesses whether the rental income is sufficient to cover the loan payments.

That should give you and your family a significant cash cushion to relief any lost sleep around debt payments.