Any ideas/suggestions would be appreciated.

Is this a bad idea? 

Today I discovered I’ve been paying American Home Shield $35, $37 & $70 PER month for a year on our 3 homes and I had no idea!!  

If you don't like the idea of roommates, then a home with a separate entrance to the basement allows you to Airbnb or short-term rent a space. 

Therefore, I'm exploring the idea of investing in a long-distance STR.I'm aiming for a Cash on Cash return of 25%, but after researching a few markets, I'm finding it difficult to achieve this target.

I have been recently playing with the idea of purchasing a second home/vacation home near the mountains and have really gravitated towards CDA and other IDAHO areas.

Cool idea!

Of course if you choose to go down this road be sure to choose a company that will be there to bounce investment ideas off of to insure they're compliant. 

It's always a good idea to regularly reassess your coverage to make sure you're not paying for more than you need.

I would also give this podcast a listen to give you some ideas from somebody who was in your shoes 10 years ago.Financial Freedom in 10 Years and $200K Cash Flow (biggerpockets.com)