The prior owner, a mentally-challenged man, had died in 2018 while in long term care. 

Owning the property in an LLC does help with your debt-to-income (DTI) ratio, but it can make securing a loan more challenging.

We went through a local company for an FHA loan and were approved.

Also, ensure that they are in compliance with lease terms, i.e. if they have pets, is this allowed?

Then they get the appraisal done, and the ARV looks too low, so they have to cut leverage to the 70% LTV loan amount. 

They just get help so everyone hating on this post if you have nothing nice to say, don’t say it at all because you have no idea what you’re talking about in terms of what I’m doing, all I can tell anyone who wants help is how I do what I do and help them find markets just like it.

What a great town.Check out - https://www.cityhs.net/1265/Short-term-Rental-InformationShould have some rules and regs for you to peruse.I will say that lakefront is often restricted or banned for STRs there.

Usually, long term speaking, it is best to keep as much property as you can and avoid selling (of course you must be making some sort of cash flow and not underwater)Good luck

We went through a local company for an FHA loan and were approved.

We are thinking that a Hipcamp would do very well because there aren't any good ones locally and we've already had success with short term rentals.The land is $125,000 and we don't have the financial ability to purchase it or do a down payment right now.