Looking for 1% deals will be cutting things close. 

There's a transaction fee cut off each payment (to cover the cost of the company that handles the transaction). 

You clearly have factored this in already.

I've stuck with the tried and true reasons I've heard to keep my search ranking high (quality photos, stellar reviews, updates to my listing) and that helps but in slow season, when I'm not willing to cut my rates as much as some of my competitors, it can be a ghost town.  

You clearly misread the market here and could have done a lot better IMO.

Offer a great first-stay experience with thoughtful touches like welcome gifts and clear communication to earn those initial positive reviews.For Big Bear’s rules, stay on top of local ordinances—maybe even connect with other hosts for advice.

Clear communication on expectations is key—I'd definitely push them to split that $250 cost at the very least! 

It sounds like you’ve got a solid strategy and a clear focus on building your portfolio with multiunit properties, house hacking, and BRRRR.

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings.

If it did flood though, I personally would steer clear.