I would make sure you are very clear with your client what the rules are in the areas they are planning on purchasing an STR.

You have to spend at least 750 hours doing real estate and you also can't spend more time doing any other job than you do real estate.

Most guests with ample notice will be somewhat flexible, however you should have a contingency plan in place for when you have a guest that is not. 

When I was working for banks and did financial planning for customers, we used 3.1% as an assumption.

My lender packaged and sold my mortgage, and when I called the new servicer to inquire about a HELOC/ Home Equity Loan they told me I wasn't eligible because of my short ownership duration.I am planning to pay for most of the improvements with cash I have on hand from my W2 job, but I want to get something set up in case of an emergency repair/ use towards other investment opportunities.

In the middle of those two extremes might be a small business with 3 years left on their lease, but they've made improvements to the property that aren't cheap to remove, such as perhaps a dental office (dentists might be pissed that I put them in the mid-risk category, but all the dentists going out of business in 2020-2021 taught us that American consumers apparently regard dental care as an optional and "luxury" spending item). 

We have in effect done a pocket veto as we have not responded, but I plan on responding indicating we need above LTR rates otherwise we can just switch to LTR increasing our revenue due to reduced expenses.  

Planning on enforcing fines and using a camera to monitor the area.

Possibly but i want to make sure i am doing the right thing to get there.I am 39 years old, no child but plan on having one at some point.

(Currently own a 4 unit rental and 8 acres planned for development in the near future).I have just received my closing disclosure and boy is it ugly.