Using everything I had learned from the BP Podcast, I ran the numbers on the house and verified that it could cash flow as a traditional rental, but saw even bigger potential as a vacation rental because of how close it is to the beach and amenities.

Even if 10 other investors confirm using the exact same setup, it may not be the best choice for you.

This is something that is important to me in the future as I plan to retire soon but will have property in Seattle that I either 1) sell and relocate to my new home state or 2) keep here and pay someone to manage them (NOT a PM, they are waaay too expensive for what they do and it's NOT worth it IMO).While I have a high W2 income now that makes this possible for me with traditional lenders currently but not in the future.

Hard money lenders may take a quick peek at your credit or finances, but much less rigorous than a traditional bank or mortgage company would.

Your choices are a higher fee, or a longer turn-time.

Another concern to consider is the selection of service providers, you don't have a choice in who does the work for the warranty company. 

@Robby Williams It's a good choice!

However, if I cannot get the property through FSBO or private lending, it will be very difficult to acquire through a traditional loan.

@Dasia WashingtonI agree with Bill, best choices are for the new SFR with the mother in law suits.

I'd pass and advise you to pursue a more traditional single family home investment.