Probably best option is if you need a place to live and the place is vacant. 

It doesn't make sense for someone to purchase when they can rent for so much cheaper.What happens in the future?

Costs are very high, but uncovered spaces aren't renting for that much (we're a frequent visitor to New Smryna Beach btw). 

This is how it is supposed to be handled but some lenders have overlays or loan officers are not aware of the actual guide lines or rules depending on their organization or who they are selling the loan to in the correspondence channel.I have come accross this several times you simply make the underwriter aware and in some cases the agents and appraiser are informed as well in case there is a need for an outside LOE letter of explanation. 

Hi Fred,To be fully approved, you need to register the property specifically as a short-term rental in addition to the regular rental registration.

Or do you really need to be right in the main drag to turn a profit? 

This will help you determine if you're on the right track or need to make adjustments. 

You normally need 3 characteristics for there to be a successful partnership - Experience, Money, Time.Do either of you have experience investing in real estate?

Not sure if you'd like to self-manage or not, but either way you'll need to build out a good team - realtor, property manager, contractor, bookkeeper, etc.

After taxes and fees, and depending on if you plan to depreciate it at all, you may not have to pay anything or much in taxes. 7-22k spread minus closing costs (also the eviction costs are a write off as well) isn't going to be too much in taxes depending on what you decide to do.