This mean that during their cruise the oceanfront view is going to be all of the gorgeous Placencia Villas, talk about attraction to an area!

At 80-90% LTV, you should be able to establish a line of credit for $150k+ at very attractive interest rates to fund other investment opportunities (such as down payments on other properties). 

Half-assed work only attracts half-assed buyers...

I do not believe it is.The attraction to investing in real estate is the perception that it is relatively low risk/high profit. 

I'm under the impression I'll get a worse interest rate, but 5% down and other tax incentives make it look like an attractive option. 

But it's my understanding that there are problems with the local government not being friendly to business.If they would go on an all-out program to attract and nurture business, the city could recover.

I myself haven't latched onto this model yet, another set of hands touching my food isn't that attractive to me. 

Is the subject to / sell with owner financing option that makes this the more attractive deal somehow? 

It would only fulfill the owners needs in a very small percentage of cases.With the low interest rates, relatively easy money, and endless investment capital available today, an attractive property reasonably priced will easily sell so that there’s no inventive for a seller to consider a master lease instead unless the property is deficient in some way or he’s priced way above market.

@Nathaniel Walker After having owned 2 bed and breakfasts they can be just as lucrative as STR if you have attractions or good enough marketing to draw in your customer base.