Is it possible to get a conventional loan to fund this type of project?

Used to be you could owner finance jusy about anything and any time but Dodd-Frank changed all that so that now you are pretty much ok if you owner finance another investor because investors are more deemed to understand fully what they are getting themselves into and some layman only looking for a primary residence could very well be taken advantage of through userous fees and interest charges.

@Benjamin Black  You have higher interest rate for primary home so cash out will help in your  loan scenario. 75% LTV is max  cash out in conventional loan for 1 unit.

I do agree with that statement, but how do you obtain a conventional loan under an LLC?

You should be able to accomplish the same thing by refinancing with a 80/20 conventional loan.

Tenants pay water if it's on separate meters.You can't charge them what they didn't use - you just include some water into Rent, like $30/mo or $50.$100/mo included in Rent will scare off the Tenants - you can't charge rent more than market Rent is...but you can bill them water/sewer if there are meters for each unit

It is a conventional (piers)  or slab? 

Management company will charge you 20% of the revenue.  

How much in general do property managers charge for STR?

It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees.