This can be a significant savings over time and there are ways to eliminate that deferred tax permanently.  

Alternatively, if the market has appreciated well enough selling out and using the profits via a 1031 exchange for our next property or permanent home. 

I am no longer a fan of FHA loans due to the permanent PMI

It would basically just be a place to sleep while she started her new job and found a permanent place to live, but would cover the income gap while waiting for the new tenants.

SELLER CONCESSIONSSeller concessions include, but are not limited to, the following:Payment of the buyer’s VA funding feePrepayment of the buyer’s property taxes and insuranceGifts such as a television set or microwave ovenPayment of extra points to provide permanent interest rate buydownsProvision of escrowed funds to provide temporary interest rate buydowns,Payoff of credit balances or judgments on behalf of the buyerSeller concessions do not include payment of the buyer’s closing costs or payment of points as appropriate to the market.Any seller concession or combination of concessions which exceeds 4% of the established reasonable value of the property is considered excessive, and unacceptable for VA guaranteed loans. 

I know the reasons actually, but a REI shouldn't have those reasons come into play if they are using the cards as a form of fast cash, and taking them out with permanent financing within 6 months of use.

I'm not sure how permanent the discount is but at least they are doing it now.

One of the other beach rentals, we never occupied and rented on a yearly basis to people who permanently lived at the beach and had full time jobs even in the off season. 

You can not put septic tanks below flood plain so there is no permanent building in the flood plain unless you put it on stilts or raise it up significantly. 

I know how hard they can be on things that are not permanently theirs, especially if they are only planning to be there for 3-9 months.