If you need to pull out more than 80% LTV (and some banks allow that) you will be paying into some hefty interest rates.  

The thing I don't understand about this so-called "exodus" from blue states to red states is why are property prices in blue states rising at faster and faster rates.

It does not have a lot to do with birth rate, it is the number of house holds. 

What are their nightly rates?

Additionally, the retail sector continues to reel under the pressure of an accelerated shift to online shopping, further exacerbated by the economic repercussions of global challenges.Moreover, the financing landscape has tightened, with rising interest rates putting additional pressure on property owners struggling to meet their financial obligations.

We also are seeing dovish FED meetings where we are being told that rates are going to drop by the end of the year.

This is due to the fact that many lenders provide various loan programs with various periods, interest rates, and minimum down payment requirements.

What is this some flat rate agreement that is X amount per month, not tied to rents, no fees for leasing, etc.?

The previous owner financials showed average nightly rate of $176.

Any such repairs made by Landlord will be billed at market rates plus the cost of any materials.