We self managed the entire time, even remotely, because we found the cost of property management to be too high and it cut into small profits.

She is thinking of renting out her house for short term rental while she's gone to make up for some of the costs of being gone (she has some special need dogs that cost more to board).

In addition, minimal cosmetic upgrades, painting, new décor and new flooring will add more value relative to its cost.

A lot of DSCR lenders are technically POF lenders as they only qualify on 4 things: 1) valid driver's license 2) FICO score 3) rent is more than the PITI of the proposed property and 4) proof of funds for the down payment and closing costs and reserves.

The only potential problem is a very old and changing interpretation of the validity of doing this when performing a 1031 exchange. 

And potentially pay for their own buyer-agent.But buyers can negotiate seller concessions.

I am trying to determine now whether I back out of this deal or think about the long-term potential. 

If you want to enjoy it for awhile before renting be sure it won't be a "knock out" factor for potential renters.Look for ways to "harden" the property from wear and tear. 

Over time, the benefits of house hacking, including potential rent increases and the ability to live affordably while building equity, can far outweigh the initial concern over under-market rents.Keep your focus on the long-term gains, and you'll likely find that house hacking is one of the smartest financial moves you can make.

Its proximity to Lake Geneva and potential for short-term rentals make it attractive.