Sale price was $1.8MGross Rents- $220,000 annuallyMgmt Fee 6%= Taxes and insurance= $32,000Other - Expenses- Maintenence upkeep= $20,000Not accounting for minimal vacancy.  

This is quite a common scenario but not knowing some more intricate details of your situation, I would recommend for you to proceed with a sale as the your monthly rent would not be sustainable to cover your mortgage and repairs/maintenance as well as management fees.

If the payment is $2,000 a month and 12 missed months it's $24,000 plus late fees & legal fees called “arrears” You have to pay, up front, the "arrears" (reinstatement amount) plus legal fees to first get it out of foreclosure.Once the loan has been “cured”, you have to wait a month or two for the lender to send the loan back into the regular pool of loans.

For a fund, it may somewhat depend on how much you are raising, but I suggest budgeting $15-$20k for legal fees, organization costs (for forming your companies) and for state securities notice filing fees.

Short term rentals are an option, however with increasing local legislation, fees, and competition are not providing a level of risk which you may not be comfortable with.There is a market that I suggest to my investor clients as an upcoming opportunity.

.- If you are going to be more hands off, you will need a PM to run it, and they will charge a higher percentage in fees than on a LTR.- Be very aware of the politics, laws, permits, taxes, etc. of the area you choose to purchase the property. 

If you are willing, I would love to get on a call with you to understand what you were looking for and what were the deciding factors when making your choice. 

Are the fees to make this shelter happen comparable to the fees for a 1031 exchange, or is there some shark in there that will jump up and bite you when you do it?

The balancing factor is that Airbnb does provide some host protection for damages.

A "true" satellite market has certain factor's to it that are unique, and one can use to identify it's viability as such, and with it predict it's direction.