The property is very close to 2 hospitals: Seton & Kaiser.

He recommended a DSCR loan instead but the fees seem high ($55,500 to close).

With an FHA loan, you are not going to be bringing hardly any capital to closing (compared to a conventional 4-fam purchase with 25% down).   

Just go to Airbnb and search for a place to stay and you will see how decked out all the homes are and how many are available and hence, how startlingly low some of the rates are for such nice houses.It can be done but if cash flow is a top priority it would not be my top choice right now. 

Could you share more information, such as , did you buy it close to where you live, what softwares are you using to automate, are you self managing or have a PM in place for maintenance and bookings and also communicating with guests?

Las Terrenas in the Samana peninsula is a good choice but I have a small thing for Bayahibe, close to la Romana.You can find property that are half the price of Punta Cana's and that you can rent around 80% of the year.

You can try DACA which has no PMI and limited closing costs.

Get as close to the truth as legal in your state and clarify that you're not a huge capital group coming to town to slum lord the entire city, you're a hard-working guy trying to break out of the 9 to 5 (if that's legal to disclose) and being able to turn a modest income on a rental would be a vital step toward that dream of financial freedom. 

I could technically get $332K out, so this leaves a little meat on the bone to cover closing costs, potential unexpected rehab issues, etc.

Would you Stay-Sell-Rent?