Investors who have a longer time horizon, a higher appetite for risk and are ready to take a gamble.

That also seems excessive considering the people aren't turning over constantly. 

The addition of new inventory comes at the heels of 5,500 hotel rooms being added in the past three years.The robust hotel investment appetite in Los Angeles continued early this year but stalled thereafter.

Prices in central Florida are appreciating because of excess demand relative to supply and also because of the amount of capital finding deals.

Dan, I am here in Pinellas County here is a statement form PinellasCounty  :Pinellas County requires a permit for any new building, addition, remodeling, or demolition, or work in excess of $500.00 or which would require an inspection. ...

The stock pronouncements of shoeshine boys would become forever immortalized as the emblematic symbol of the excesses of that period."

It is part of the business but 25 does seem excessive. 8)

Another consideration: excess square footage may present forced value add opportunities for adding an additional bed/bath

Are investors looking for individual STRs of either flavor, or is the appetite for larger portfolios of multiple STR assets? 

bryan made some good points, but you seem a little timid about the market...that being said it may not be the time for you to plunk down all your money and overleverage yourself with debts in excess of 1 million..lending may be an option, but it's also great to have the purchasing power to close all cash. personally, if i had a few hundred grand, i'd put it down on a larger multifamily complex..you can get a steal right now that will really set you up for the future.