But you are treading on dangerous ground as fair housing laws comes into play and familial status is protected from discrimination.  

"Danger!!!!"

They probably want to know if it's a "dangerous breed" animal, which could increase your premium or cancel your policy.

As a landlord, any form of open fire is dangerous (candles, smoking, gas stovetops). 

In an area with fewer rentals it could have easily been 400/night.

Like what @Russell Brazil said, I'd advocate for a row home over a townhouse or condo because there are fewer rules restricting what you do (as long as things are up to code with the city of course).

We've read a couple books and listened to several dozen hours of podcasts recently from BP, The Short Term Show, etc. so we know enough to be dangerous but some of the finer details are lost on me...My wife and I have set our targets on our first STR property here in TX and have some questions regarding how people have handled the transition of ownership.

As others have said, if you want a home with fewer problems, be prepared to pay a higher price.

Which is the most profitable strategy for you in the rental property business:A: Investing in affordable housing (more units)B: Investing in more expensive properties (fewer units)

One way or another, they are building their net worth.Building net worth is how you may possibly retire with fewer worries.