Your time horizon, age, goals, account type, and risk tolerance all determine your allocations.

Whether you leverage your existing property is a question of cash flow and personal risk tolerance.

Even if you make mistakes, you have a consistent stream of income to regain the capital and start again.If you have high risk tolerant and a positive outlook on becoming an agent, your plan sounds really good.

Will they be tolerant of STR's coming and going?

It is still an investment with risks and you need to do your own research and evaluate your personal risk tolerance before investing there.

On thing I'm curious about is how others define their risk tolerance... e.g. what strategies align with high, middle and low risk tolerance.

You have to determine what your risk tolerance is. 

I think it comes down to goals, risk tolerance and how intimately you know your investment vehicle. 

If you are going to invest the 5% in something that’s a greater profit risk adjusted to your tolerance than the extra cost do 80% if not do 75%.

However, if you aren't self-motivated; can't drag yourself out of bed in the morning; or don't have connom sense, you'll find that successful people have little tolerance for that nonsense.Good Luck,Mike