My goal is reviewing retirement options. 

I think you'll be hard pressed to get an ARV of $140k IMO...I'd expect something around $115k or lower.

Properties in flood zones are harder and more expensive to insure, which lowers their perceived value and makes them more difficult to sell.

I would possibly look into some other options in the regions.Good luck!

I can now close loans at a lower rate with my commercial banker than a residential owner occupied. 

Umbrella insurance provides substantial liability protection at a lower cost and avoids the administrative complexities of managing an LLC.

I would check and see how many 1 bed and 2 bed options there are and what they are priced at because most folks will prefer the full place to themselves so rooming 2 people together could make getting bookings a bit more difficult (not always the case but something to consider)

In a nice suburban neighborhood a large bathroom with a standalone tub can add a lot of value, but the addition of a second bathroom is also important.Do you have an option of making a slightly smaller master bathroom and having a half bath or smaller bathroom with shower stall in the other bedroom? 

Another option is to rent it out and keep growing your equity while someone else covers the mortgage.

Not sure if this is an option in your area, but we have a company called CREW in Salt lake and they are $50 a month and take the cans out and bring them in the day after. it is hard to rely on the cleaners at times. unless the cleaner is paid to do the trash every time.