With 3 adults and 2 kids we could have rented 3 hotel rooms, or perhaps 2 hotel suites.  

It's a higher turnover market because college kids rotate throughout the years, but at an average of $1,000 - $1,500 PER ROOM in my market, there are some amazing investments both on and off market. 

And what is the mix of guests (couples, entire families with kids, grandparents, parent visiting college students, hikers/water sports, college football fans) maybe theme it to what people think of when they go there or provide things that would enhance their stay (paddle boards, video games, theater room, kayaks, really cool beds that have slides etc).

I''m a health professional and my wife stays at home taking care of the kids The goal is to generate income and slowly retire from 9 to 5 job The house we live is paid off and we have 1 rental property which generates about $700 cash flow.

If they took it once, they'll probably take it again. no kidding instead of whining and making a post just resubmit your bid and if that agent cant get it done get another one or do it yourself.

Just kidding.  

Your biggest risk is kids commandeering the thing while mom and dad are in the hot tub,and running over and killing someone(s).  

You are kidding about the $100 I hope . 

what if we catered to 8 adults max and 6-8 younger kids?

I have family in puerto rico and I go there almost  every year since I was a kid.