As far as down payment, investment properties typically require a minimum of 20-25% depending on property type, FICO, level of experience, occupancy %, etc.

I am hearing you when you say you had the builder fix the grading issue, but grading is in my experience the #1 cause of repeated water in the basement.

Initial budget $250-600k +- Please advice if it's seems like an ok plan in your opinion (preferably if you have personal experience). 

Location, professional photos, great management.

This will give you some hands-on experience and an opportunity to put into practice what you have learned from reading the book.

Hard Rock Hotel (Downtown San Diego) has offered investment ownership opportunities for certain rooms within their establishment... has anybody had experience with this or horror stories of such investments?

Do you have any prior experience with real estate investing?

I appreciate all the insight and for the most part I do agree with you all on this being the typical experience with STR's.

I don’t have any experience with investment properties any advise will be highly appreciated Thank you !! 

Does anyone have experience developing residential communities with prefab/modular homes (not mobile homes) or know someone who does?