If still in growth / portfolio expansion phase, I'd want to have $ liquid for my next acquisition. 

Do you hard work on the research phase (including staying away from hostile regulation areas) and you should have no problem being successful in STR.  

@Frank Patalano I’m not being held back, I’m just in a different phase of my plan.

If it looks good enough for them to make an offer, then I would provide full financials during the due diligence phase for them to scrutinize.

My uncle had a similar situation.. he bulldozed the house, but I would not recommend that :) From what I've read a 2 phase extermination followed by a good duct cleaning generally does the trick for even the worst houses.

But even then there is a phase out after 100k.5) If you have a W-2 job, to offset that with depreciation, you have to spend more hours on real estate than you do your full-time job, and prove it.

Still in the research phase, but I have been doing a lot of reading and one thing I keep coming across is how important your team/network is!

But for the house-hack phase of the plan, that shouldn't be necessary.

Would do it is phases.  

You could probably equip it with a kitchenette, countertop convection oven, and induction burners to meet the needs of a studio.