More info is needed.Appraisals can not consider below ground space unless there is adequate egress in case of a fire or other emergency.

My situation - I currently have the funds needed to close (~$16k) with the FHA loan, but I won't have much left over for emergencies.

I chose Toledo for two reasons. 1) there is demand for STRs in Toledo and the market isn't oversaturated. 2) I have family that lives there in the event of an extreme emergency, I could call on them.  

We live out of state and wanted someone else to have a key for emergencies.

I want the cash needed for the next project to be around 25k so I can use the rest as reserves/emergency fund. 

Opportunity Zones.As I follow NREI ( National Real Estate Investor) Experts are predicting that Opportunity Zones are going to be on the top of HMW (High-Net-Worth) Investors list with multifamily, marijuana, retail and industrial are emerging as some of the key areas to watch IN 2019.

I suggest you look at some other markets in the midwest , such as large metro areas of Kansas City, Indianapolis, Cincinnati, or some smaller emerging markets such as Dayton, OH to name a few.

He said he would ask for an emergency inspection from HOA first.

So you want to do the long term mortgage first, and perhaps use a HELOCs for an emergency fund.  

- What are the hottest trends and emerging technologies in the industry?