They have higher rates and typically have prepayment penalties, however they require much less documentation. 

HI BP,I've been thinking about what to ask from tenants in case of issues...besides a copy of their gov't ID (Drivers or passport), credit report stating full name, address and birthday, what else do you all typically ask for? 

Essentially they pay for 3 and get 2, and the 3rd night remains bookable in case someone else wants to reserve it.Without that feature available, I would re-institute 3 night weekend minimum, at least in peak times.

Or if this could be typical and it’s better to correct this behavior earlier than later.Are there other thoughts or advice for this particular situation?

This applies to properties used for the production of income, such as rental properties.However, if you initially declared your property as an STR (which typically falls under different tax rules), you might have been using a depreciation period of 39 years, which is common for non-residential property or property used for personal purposes.When you convert your property from STR to LTR, it's considered a change in use for tax purposes, and you would adjust your depreciation schedule accordingly.

We are getting a decent deal on the property and essentially being gifted 20% equity of the property. 

They typically have a "designer" or "consultant" for free that can give advice (or research in your case) specific items.

AlabamaEffective Property Tax Rate (2019): 0.37%4Typical Home Value (2022): $189,9766Annual Taxes on Home Priced at State Typical Value: $702.9The current metro area population of Montgomery in 2023 is 374,000, a 1.91% increase from 2022.

Lockup is typically one year though if invest larger amounts these can be negotiated. 

@Leo Gregoire, a typical first step after you are situated with your brokerage would be to reach out to your "sphere of influence".