In terms of cashflow, I high recommend checking Cleveland, Ohio where you could find a rental meeting 1% rule.

The cash-flow won't be as high as Cincinnati or Cleveland but in return you will see those high gains in appreciation. 

I put "paid" in quotes because we traded our last low income housing rental for it;) I like the Crimeshare buy low sell high concept or renting if you can.. that has to be wide open inventory.I personally spent most of the 90s in Timber..

I definitely agree that creating a space for incredible memories, having high quality service, and getting to know guests on a personal level are the best ways to attract repeat bookings.

I have the funds in cash to cover the cost of the builds in a high interest saving account earning 5%.

What I would caution against is being a landlord in an area with a high risk of bad tenants.

Even if you don't sell it, it gives you the option to rent each side at a premium because the units are now each 4 bed 2.5 bath town houses, so they demand high rents. 

But every lender is asking for a high end closing cost, which leaves me with virtually nothing to pull out from this home.

With that being said, you credit score is very high, which would qualify you for business purpose programs like hard-money and rentals.

Their website is trendy and user friendly, but when it came down to the actual rates I was quoted I found their rates highly uncompetitive compared to other DSCR lenders out there.