Setting up direct bookings is a great way to save on fees, but you’re right—it requires extra effort to ensure everything runs smoothly.For vetting guests, start by asking a few questions when they inquire, like the purpose of their stay, how many people will be there, and if they’ve stayed in short-term rentals before.

@Jordyn Ohs Suggest you run a financial model and assume 100% vacancy.

To help you with running your own analysis I find it helps to use an example, so I will give an example from my own market.

I am hoping this gives me a head start in funding the initial investments.I also have some high balance liquid assets, but I am putting all or most those funds into other investment vehicles to diversify my holdings such as stocks, bonds, etc.

Not sure your situation financially but even your $100,000 HELOC is going to probably run you $12,000 additional each year in expense that you've got to factor in.

And with that again, nail hit squarely on the head. 

Another note on construction cost, going vertical is very expensive now and would require have a great connect with a developer and a builder in the area.See what rents are in the area and run the numbers to ensure the rents will cover your costs and give you a solid return—using the 1% rule can help.

Either way, run your proposed solution through an attorney. 

Before they fund you, they have to run the project you present to them with their own “fair market” repair costs.

With seller's permission: Unscrew the shower head and put it on shower floor.