Has anyone ever sectioned off part of a SFH for use as both a traditional rental & an Airbnb?

traditional financing How did you add value to the deal?

In all accounts, tile is the closest to "tenant proofing" the flooring, but even then one dropped item can cause a major issue. 

tradition financing with seller credit and state grant How did you add value to the deal?

Those are all really expensive items and can easily add up to $35k+ per unit.

It may make sense to have a Traditional LLC as the operating company (property management firm) and then another strategy for asset protection for holding your rental properties. 

I guess at this point, I am going to focus more on some of the variables and not go with "traditional" numbers.

After talking with @Rex Celle I decided I would go with a traditional conventional loan to purchase this home......If using a conventional financing my focus is to use them on multifamily properties.

If necessary, as in for larger-ticket items, get "a couple two-tree" contractor written estimates and get your price reduction.  

Some also look to purchase a nonperforming note with the sole intent of foreclosing, taking the property back and fixing up to sell with owner financing or as a fix and flip to a traditional buyer.