This is probably the most important thing to figure out because if the Tenant had not paid you for this then this would be money out of your pocket and next time it might be your money that you are out. 

With a family and kids the best house hack is a house and cottage or duplex option.

Gas or electric would be a much better option, safety wise, from a house fire standpoint, CO danger, or danger to children or pets from the open flames. 

When house hacking, consider the area's average rents, property values, and financing options, such as FHA loans or conventional loans, which may require as little as 3.5% down for multifamily properties (if it's owner-occupied).

There are people who buy a longer term (12 months or more ) OPTION giving them a RIGHT to purchase a subject property, at a certain price, within a certain amount of time, and attempt to either sell the option for a higher price or close on a simultaneous purchase and sale to an end buyer paying a higher price.  

Taking a deposit to secure the deal can be a good option, as it shows the buyer is serious and committed while also giving you the time needed for the 90-day rule to clear.

That $3,000 is typically the annual cost for a full service property management option. 

Any insight into the kind of options we may have for something like this and how qualification for a small hotel differs from residential conventional loans would be extremely helpful.

I would suggest setting "instabook" to "off", allowing one of the more flexible cancelation options, and having a minimum stay in line with your local ordinances.

so, to recap, you need cash for: down payment + closing costs + holding costs.for a new investor, a live in flip might be a lower risk option than an outright flip.