The older homes there aren't as bad (2k to 3k). 

Since I am assuming you aren't a super host and don't have any or many reviews yet, you will want to underprice your competition to get some traffic and then you can tweak prices from there.  

While down payments and principal payments aren't deductible, inspection fees and other acquisition costs can be added to the property’s basis for depreciation.

And some of these left HML in a tight spot borrowers could not access their draw money.. this happened just recently to Fund that Flip.. and their borrowers I know i got a call from one of them that was owed 300k in draws that was not coming.I can understand that rates aren't what they are when you close as when you get quoted, but if you offer a "rate lock" and use that term, you need to stick to it even if you aren't required by law to do so.

If you aren't interested in low cost index funds then just throw it in a HYSA and call it a day.

This would also likely be unenforceable due to no authority to sign such an unnecessary piece of paper onbehalf of the remote buyer. 

Reason I’m asking is because today reading through old posts on this subject, I came across discussions that stated if it was Credit Card, PayPal, or similar avenues, that 1099s aren’t needed since those companies issue them.

It’s not that these expenses aren’t important—they should absolutely be planned for even if the property isn’t producing extra cash monthly.So no, you’re not misunderstanding—it’s just that the guest may have assumed investors in this strategy are prepared for such expenses through other means, like savings or planned reserves.Thanks for your input!

Also their DSCR LTV's aren't the best.

In my experience, banks aren't generally that interested in financing home building during construction.