With 5% down payments and all the expenses deducted, there seem to have close negative/only around $100 cash flow each month.

This would allow for a longer carry back with up front cash flow.

They have to allow them in to inspect to make sure things are copacetic.

Your construction skills can give you a significant advantage, allowing you to save on rehab costs or even flip properties for capital.

It is still quite restrictive IMO and would not allow for many STRs but some to be added to the local market. 4.

Obviously if I intend to have a top performing STR in this market, my buy box will allow for a much higher max purchase price, but I wouldn't feel comfortable with shooting for the max if there aren't clear ways to beat these competing properties.

However, there is no way to do so without risk.The Internal Revenue Services issues three (3) Private Letter Rulings (PLRs) that allowed the taxpayers to do just this.

It's not worth hiring a lawyer but as you suggested, small claims court may be an option IF you hired them in your personal capacity OR if your jurisdiction allows LLC owners to go to small claims and represent the LLC in court (many, most?

Many lenders won't allow actual cash value or ACV.Repair cost or replacement cost?  

What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.?