Definitely go the legal route here, don't rent out the basement unless you have the OK from the relevant authorities--it's regulated for a reason (fire safety, carbon monoxide poisoning, etc.) and your insurance will not have your back if something goes wrong.

The STR, if purely an appreciation play,  is speculation to me. 

Thats going to play a big role in your options i think

Most gulf front investments are mostly appreciation plays unless you do a serious renovation.

The PM should have written authority to sign on the owner's behalf. 

It's good to hear that you want to play the long-term hold game as that is how you'll ultimately build equity.  

If you're aiming for growth and can secure a low-interest mortgage, financing might be the better play.

On its resident fees page, it states that the Jerome Village Community Development Authority can charge up to 2% income charge. 

I have a contrary play. 

Playing the long game, it's not for those chasing rainbows, definently for the LT planned methodical focus.