If you're spending the money build a house, it seems like spending all that effort to only leave the house in a distressed state that would make it attractive to flippers would be a bit of a waste.

Manny explained it well.In other words, if your building (say it produces $19,000 in NOI) and it's in a "D" area (say cap rate of 10%) and if you find a similar building in an "A" area (with a cap rate of 5%) that produces the same income ($19,000), investors are more than willing to pay DOUBLE the price to get that $19,000 income for a building in an "A" area vs. the same income for a building in an "D" area. 

I also see a space where I can select that this is an income-producing property.

I also see a space where I can select that this is an income-producing property.

If you apply the cash flow to pay off your mortgage you not only are accomplishing your goal of living in a clear and free home, at the same time you are paying off an income-producing property its a win-win.

It’s proximity to the Orlando attractions equates to a lot of interest in bookings.

Also, with low or no money down, you have to be creative or be able to attract people with money, meaning you need that hustle and learn the most you can with what interests you. your vibe attracts your tribes. know what you want and get after it! 

The market does not produce cash flow, it does not have extremely cheap leverage, and it does not have enormous tax advantages.

Once we get it fixed up, it'll attract higher rents, but for the present, we're going to leave it as is.  

What are your needs vs. what are the needs of the tenants you hope to attract?