This family of three finds that they never hear back from the larger rental agencies even after paying for an application.

This is our first time with STRs, and we’re willing to learn.

@Don Konipol Elevation, Palmetto and a couple of others do this for SFR owners.

How do I solve this.

This one will require moving several walls to reconfigure the space.

This may be the case to either leave cash in the deal or if you are unable to cover the payoff of the first mortgage, you may have to sell. 

Haven't found much resources on how to structure the deal whether to buy out partner's shares at existing basis (I believe this wouldn't be advantageous as I wouldn't get to mark the asset to market and lose out on depreciation) or open new LLC or S-Corp and buy out both partners (I would end up taking gain tax due to sale but would get new dep. basis).

We didn't end up going this route on our remodel, but there were 2 designers we talked to who do everything virtually which saves a ton on costs.

And yes, we have had to switch floorplans in a few situations, but now from experiance we can avoid lots that we anticipate will cause this issue.

If this is your first deal, you're likely going to have a rate in the 11%s with approximately 3 points...give or take.