Shaydon,DSCR only requires 15% down for a SFR purchase but there is no way to use the equity in a purchase scenario.

One person uses it for long term rentals, no pet's, requires super high credit, 3 months deposit etc etc..

For your listing, I would lead with the most desirable parts of the house first.

Appreciate any insight into the matter, if I can make it work it'll be a phenomenal property in extremely desirable lake location.

The parties acknowledge and agree that neither party shall have any liability or obligation to the other with respect to the matters set forth herein unless and until a definitive PSA has been executed and delivered by both parties.ConfidentialityThe parties agree that all information exchanged pursuant to this LOI and the negotiation of the PSA shall be kept strictly confidential and shall not be disclosed to any third party, except as may be required by law or as necessary to obtain third-party consents and approvals.We trust that the terms outlined in this LOI are acceptable and look forward to your favorable response.

You could sell and 1031 it into the next property but you'd usually have to time the sale of your existing property and the closing of your new property right.I also wouldn't worry about having central air in the property unless that is essentially a requirement for you to remain competitive with the rest of that market.

If you dont desire to do the appropriate searches or stick around long enough to receive expert advice you may need to pay a mentor.

What is your fundamental desire when selling?

SB1033 is likely useless for your intent as it allows jurisdictions to Set their own requirements which is exactly what existed prior to SB1033. 

Handling Maintenance requests and emergencies, Handling tenant disputes, Ensuring the tenants are properly insured (if you require them to), Marketing the property, Screening applicants, Handling the security deposit return, and a whole lot more.