It really depends on how many sq ft the unit is.

Bidding online makes it too easy for people with no clue to bid everything up too high or down too low (depending on your state).

We will also birddog the best opportunities on the contracting side so i figure we can boost out hourly rate up to at least $100/hr (from 80), and jump from the build to contract jobs to take advantage (we have our own heavy equipment and dump truck).

Now, we have the highest tax rate in the state but we don't have the best schools, amenities, or location. 

Because of material participation I can deduct that $350k vs other income.Using combined federal and state tax rate of 40% x $350k = $140k in immediate tax savings.

When my 3k sf STR in Florida is empty with the AC set at 77 my electric bill runs about $175 for the month, and water is maybe 40-50 bucks depending on how much irrigation I need.

Bill, I think that it depends on your property. 

@Jarrod Patterson  Depends on the reason for the temporary need from a local, also you have to screen financials some of these people may not be viable candidates even if they think they are.   

The decision depends on your personal circumstances, preferences, and resources.

HELOCs only make sense as short term funding - especially with rates where they are now.