Highly recommend (I require) collecting first month's rent prior to handing over keys.

To list a few...Anyone who wants to increase their property’s income potential (and equity) and build new housing in a market that struggles with high prices, low supply, and few new construction.House hackers who live in their primary and want to airbnb an ADU love this strategy or vice versaInvestors who want to do both long term and short term benefit from having two separate units.Rental Restrictions on ADUs.Thankfully, Raleigh is very STR friendly and ADU friendly right now.

The other areas you mentioned are too high for this particular need

While having high standards is important, it's worth considering that many Section 8 tenants might not meet requirements like a 640 credit score or $90,000 in household income.

Rental arbitrage isn’t common in my area ( high point North Carolina) but I was planning on starting in another state.

I realize I don't have the actual NOI, but that price sounds super high for the gross income you're stating in your narrative.

One of my applicants showed up with little credit but no defaults, no evictions, and only traffic violations and verified income high enough to cover well over 3 times the rent and I accepted the tenant despite there being some signs.He paid the rent in time for the most part until a few weeks ago when he stopped and I could not get ahold of him.

The percentages are going to be up to you There are all kinds of High interest account that require all kinds of hoops to keep them.

another issue it is about 18 months wait to get a Cabin started due to high demand for builder.  

@Jacob W. land market in FL is highly competitive.