Some people have made a lot of money betting on the reverse though. 

Your best bet may be a rate term refi

And, quite frankly, cities with no regulations today often create regulations in the future.It is a much safer bet to find a locale that has definitively legalized short term rentals.

They can usually be loosened by hand but bring an adjustable wrench / channel lock pliers just in case.  

We are moving towards on making our condo a Short Term Rental and quickly adjust it to a Long Term Rental if short term doesn't work for us.

Maybe closer to 5% for just the balance sheet and adjust upward for any capital or experience you bring, the risk of the project, etc.Non-recourse carveouts can also get big enough that the line between recourse and non-recourse is blurred so that's also a factor to pay attention to. 

Have the tenant adjust the setting as perhaps a deterrent.

How about turnover, do you think it will be higher even with an adjusted rental rate?

Current rates are in the 4's on a 30 year fixed, so not heinous and since you don't qualify for conventional financing, this is your next best bet. 

Nope, fixed means fixed, it’s a contract.Nope, they don’t get the escrow funds, that goes to insurance and taxes and has to be adjusted yearly to keep your balance within a few percent (10?)