If it's a good area, meaning high cash flow, it attracts both landlords and tenants, and the quantity of tenants willing to pay high enough rents to deliver the higher CF, is what makes it a good area to invest.

That will affect your current ability to attract quality renters or receive strong reviews following their stay if made into a STR. 

If not, are there any alternative strategies that I could consider to get this done as a long-distance investor?

With a property of that size, you should be able to attract larger families and demand higher rates.

No - Chesky is wishful thinking. a) Most people are not nomadic in nature b) It takes a lot of money to travel and stay at Vacation Rentals (the cost of the rental, food, auto and gas, etc.)For most people, STR trips will continue to be a nice little getaway alternative to traditional hotels....although I believe their usage will grow a good bit anyway.

We did mostly durable, high end finishes so that we could attract high quality tenants, and charge above market rents.

Another alternative if your property is close but doesn't appraise for the price you want, rather than bringing money to the table, you can also accept a higher interest rate and the lender will pay you.

Reaching out to the more experienced BP brain trust for ideas on the down payment or other options and alternatives. 

Then improved the vacant unit to attract a Househacker and put it on the market.

LOL @Jay Hinrichs "sounds like the clothing optional places" was exactly what I was thinking.No kids/pets isn't my cup of tea personally (I could field my own soccer team and my bird dog is my BFF, LOL), but I can totally see the attraction.