They are backing out after application approval when the lease is sent for digital signature.  

In my analysis, it does make sense when you have double digit appreciation, that it would make sense to do an interest only loan.  

The further drop-off this year is concerning given the basic data the STR platforms offer in terms of search impressions and page view numbers tell a pretty clear story: if you're under triple digits in pages views for any prior 30 day period expect business to be very slow in the 30 days to follow. 

Oh and since you're out-of-state, make sure digital and/or fascimile signatures are a part of your addendum.

It could be more if there is some timed turnover as in some locations median rents can go up double digits in one year.

I strongly suggest looking at alternative investments (lending, private placement funds, etc) where double digit returns are possible without the risk and hassle of owning these kinds of rentals.

I recently became a REALTOR after spending most of my life in digital marketing and advertising.

If you add equity accumulation to cashflow, you quickly get deep into double digits, as far as returns are concerned. - I strongly believe that turnkey investing makes sense, but only if you work with the best companies.

So, if you are looking at the cash flow analysis you would only consider principle reduction and appreciation if your disposal of the property is part of your buying decision.This used to be common when yearly price increases in some markets were double digits, year after year.

The price points are lower and the returns are double digit returns.