Like @Ryan Moyer said I can utilize that cash now to invest in more properties and kick the can down the road, potentially past my time on earth.

18% is pretty arbitrary without knowing the actual cost of the policy and therefore savings vs. potential repair costs.  

Research state and local laws regarding payroll day, and type of payroll days that you have available to you to choose from- legally.

Would reaching out to a real estate lawyer or architect be better to see if it's possible to convert to a legal apt?

Look for areas with strong demand, potential for growth, and where you can comfortably invest.

The involvement of onsite management, often seen as a potential red flag, can lead to the property failing crucial qualification tests.

@David CozziYou may be able to do that.However, you have to consider the drawbacks of your stategy.You are converting a potential scenario where you have passive losses with no active income to passive losses with active income.

This knowledge is essential Assuming you source a good deal (with multiple potential exit strategies), I would then bring in a capital partner to fund the down payment or Property acquisition…and get some sort of sweat equity (depending on your experience and value brought to table) and then invest the $10,000 you do have into the deal itself to add your stake, add some skin to the game and align your interest with your capital partner.

The new Dallas rules have been challenged, but even if lifted, you know where the city hall sentiment is....so I expect them to potentially make things difficult on STR operators. 

So let me know if you need a boots-on-the-ground view.It's an interesting area around here, I think it has not realized it's full potential.