Is it simply an issue of people not feeling comfortable with the liability limits provided by AirBnB?

However, if you fall into $1M-$1.2M loan amount (which I will) they can still deny based upon loan size or simply give you the underwrite from hell.

The point of this is to simply have the funds back so that we can move onto our next investment.

@Gregory Cudzilo  Refinancing and selling later is simply a math problem. 

I appreciate the insight and outlook of a different approach simply put, by using your money as a lender/loan vs locked up in equity in a buy hold.

I am certain there are  plenty good tenants we are missing out on that simply don't have that kind of cash on hand.

If that's what you think than I'm simply not communicating well.

I know of a bank that, in spite of the above, somehow interprets it such that they will not let ANYONE use a 401k loan, no matter what, even though that guideline is crystal clear (to me, at least) that you can (solution: I simply don't broker the loan to that bank if that's the scenario we are working with, and I'm not even going to waste time with them if we're doing something along the lines of what is being discussed in this thread). 

A sharp seller's agent will simply counter your offer at that price, so you may pay more than was necessary.  

I've seen people simply fill in pools and it causes huge problems when it rains.