Also if I have extra money left over I plan on putting it back into my home.

It sounds like that's an extra cost for them, so I wondered if that's realistic to expect (the idea being people who rent rooms may not have as much disposable income), even though it sounds like a really great idea that I want to figure out how to do.

Our costs were raised substantially due to remote closing, where out-of-state attorney charged us plus attorney we used for closing  charged as well, didn't disclose extra costs until closing. 

And whether or not i would be able to rent the extra rooms out.

@Justin Windham thanks for the extra information!

Then use that money as a down payment to get to an 80% LTV on the new purchase.Between your income and the project rents you described, it doesn't seem like carrying an extra $120K (enough for 20% down on the new purchase) in debt would be a problem for you.

Are those lots vacant simply because the owner did not really want the extra work of filling them?

Can you afford to pay the extra 1% if you don't put 20% down? 

If your goal is to buy a nice vacation home and enjoy some supplemental income I suppose you can do whatever you'd like, but STR investments carry plenty of extra risk and upkeep.

The rest of the rent goes to paying down the mortgage, and my personal extra income goes to paying down the mortgage.