We have consulted with real estate lawyers and they basically just tell us you guys need to create your own terms and how you want to proceed. my thought is, 100k down while waiting for loan to assume, and seller financing and living there until that moment, and covering the rest of the funds at the closing table.

Educating your borrowers about loan terms and financial planning can go a long way in building trust and satisfaction.

What a great town.Check out - https://www.cityhs.net/1265/Short-term-Rental-InformationShould have some rules and regs for you to peruse.I will say that lakefront is often restricted or banned for STRs there.

Like everything else in Real Estate, you just need to negotiate the terms, length of loan, interest rate, early payoff, etc. 

What has been your experience, and what benefits have you seen?

However if this is an appreciating market, although your monthly cash flow might be neutral or negative, you may over time actually have what we consider phantom cash flow, which is gained through appreciation and tax benefits. in most cases, if you need true “cash flow” use the simple one percent rule.

We are thinking that a Hipcamp would do very well because there aren't any good ones locally and we've already had success with short term rentals.The land is $125,000 and we don't have the financial ability to purchase it or do a down payment right now.

Typically, though, the terms are spelled out pretty well...at least I know they are here in our Florida contract.

If you don't allow them to stay, they will likely need to go to a long term stay hotel or something else similarly expensive PLUS pay for storage for their belongings, PLUS pay to move their belongings twice rather than once.

Corporate leases typically provide stable, longer-term tenants, while Airbnb can yield higher nightly rates but may involve more management and turnover.