Typically I look for a businessman who has good income monthly but shows little income on their tax return because of tax write offs or someone who has great income but has bad credit that is "excusable". ie: Medical problems, previous job loss, auto accident, that kind of thing.

The article I read had me kind of worried but I figured it couldn't be quite right.

I don't see how is the related, but you could easily relate to the contract and obtain the cost of this.in nutshell avoid these kind of tenants if you could.

I recommend keeping it simple and sticking with the lease (and let the PM handle it...don't dedicate mind share to these kinds of things). 

Any kind of feedback would be great.

What kind of returns can you get on the different scenarios? 

These kinds of loans are considered revolving debt and the amount can be used at any time and you are only charged interest on what you use.

What I wonder is the kind of condition you get your unit back.

From what I can gather they are bringing in an income of over $30k+ per year before expenses.What kind of red flags should I look for with a beach rental?

This can lead to all kinds of problems including potential legal issues.