They are around 4%, which is higher than some major cities.Could you do mid- or long-term rent well if everything fails?

I pre negotiated rolling any inventory that I could not sell or would have to take a loss on to 5 year term and rent them..

Purchase price: $1,150,000 Cash invested: $300,000 Sale price: $1,628,000 Built in 1890, this Old Victorian was converted into a duplex in the 70's by a talented architect who made some unique and extraordinary custom design choices (read vaulted skylights) that made this property truly one of a kind.

Yes its cash up front but its not wasted.

In my specific situation, the original developer is no longer in the area, and with no HOA or planning and zoning…..what if anything could be enforced against my plans for short term rental?

As for the cameras, is there a reason to have them on what I think is a single family long term rental? 

Reason I do not want to do a cash out refi on my primary is because my rate is locked at 2.7%.

You'll likely have to pay cash for the property as it's unlikely you'll find financing for this type of endeavor. 

Quote from @Patrick Drury: @Colleen BaroneI would make sure to have your agent add a contingency in the additional terms of the contract for the POS if you don't get a copy of the report prior to submitting an offer, or just don't invest in those areas.

So absolutely viable if - like you mentioned you can get creative in terms of financing the deal.