There's also a lot of mid-term demand in this area from people moving down and waiting on their home to be finished.

We lend up to 75% of the ARV but most people are buying and rehabbing well below that from the investors I have been working with.

I think the risk is similar and probably even less likely with midterms, particularly since you should always have a lease agreement for your midterm rentals whereas people rarely do this for short terms.

The people the seller should have this discussion with is the title company and or legal counsel.  

I live in a town of about 100k people here in Dothan, AL, so STRs aren’t the most popping market.

Capacity and Tolerance. 1) Capacity: how many people can you comfortably fit in the property, is there room to add more, or add more value to the tenants to increase rent.2) Tolerance: How many people are you comfortable living with, if there are vacancies are you able to handle that.House hacking is an amazing path to homeownership, and a nice low barrier to entry into self managing your properties.

I think there are a few types of people when it comes to this oft asked questions. 

Well, this my opinion, if you like unpredictability, constant change and people/contractors with no regards to you or your property then "YES" flips and STRs are the way to go...LOL....I love it!!! 

I've partnered with several contractors over the years (before I got my own license) and it is very normal for the contractor to be paid for materials and labor, even if they are doing the build "at cost"It's complicated and as other have stated, you've gotten yourself in too big of a mess to be sorted out by some people on an internet forum. 

Sort of a unique way to make money, meet new people and not get stuck with a tenant you don’t like for too long!