It provides an opportunity to see what's happening in the units.You still have the ability to evict for lease violations, but your less likely to face non-payment issues. 

All it takes is one non-payment or messy eviction to set you back months and even years in cash flow.

Normally when a  property is advertised as "cash only" the property is in poor condition and/or the seller wants to reduce contingencies and opts for a cleaner transaction.

@Vinny Muli - it is VERY hard but not impossible to get an equity line of credit on a non owner occupied property. 

Those willing to go beyond that could be good partners for real estate investors.Traditional banks/Local Banks and non-bank lenders - If they are a portfolio lender, meaning they actually hold on to the loan and don't just collect your payment, then they have the ability to be flexible.

- Value add - How much does it cost to convert Non-climate controlled units to climate controlled units? 

He was happy to allow me to rent out nightly because it actually helps keep his property in better shape than a long term renter (having a cleaner in there every turnover, short stay guests always let you know when something isn't working, etc) but didn't want to hassle with worrying about a percentage of income/management, etc.

Our pet deposit is non-refundable which is what I generally would recommend (assuming your state and local laws allow that).

In many cases, it weakens the lender's position as they did not underwrite the buyer and an owner-occupant tends to pay better than non-owner-occupants.

If you need 10 minimum and have to hold those non-paying tenants until you get 10, what does that cost you in your financial model?