This is because insurance proceeds are the path of least resistance in terms of collection (more on this below).

I find that converting the property into a duplex is a lengthy and costly process, and I want to start renting it legally without going through a long process, because I've spent for rehabs and don't want to put in more for now.

I'm in the market to purchase a short-term rental in Saint George Utah but the market there (perhaps like many places) feels very overpriced. 

As long as the ratio is 1 to 1, you are good to go.

We are in it for the long game, so we felt it was right for us. 

It’s a great market for long-term appreciation and growth, but it will be harder to achieve cash flow compared with how the Midland home is structured.

@Jaquon MillerDepends on your long term goals but based on what you wrote, I would strongly consider refinancing

My plan A for my folks will always be to hire a 3rd party, but having done this for a very long time, I know I will come across those that want to be at least a little more hands on and I want them to have an option.Thanks in advance for any suggestions.Cheers,Robert

I’m eager to expand my network and forge profitable, long-term business relationships.

You're being a bit short sighted in a long-term game. $200/month net cash flow today is an 8% CoC return in the scenario you described.