I think you'll get it back on the appraisal and will be a more desirable property/rental.  

I am a real estate agent and not a lender so I would speak to a lender to confirm before making the decision.House hacking is mainly desired as a means to acquire long term rentals with a low down payment loan product reserved for owner occupants.

The desirability of it as a place for vacationers or short-term renters.

The key is making the property desirable enough and priced for the best types of tenants.I'm crunching lots of numbers and getting my head around a lot at the moment as I learn more, but the core of the model hasn't really changed since I conceived of it.Obviously finding cash is the big looming missing piece right now (although I'm sure there are lots of missing pieces).Thanks, I look forward to meeting all of you locals!

I have found that if I want to rent more quickly in the winter months I have to be slightly under market rent unless the unity is really desirable. 

I still own property, however property value hasn't grown much due to the correction, the rents have gone up considerably and the neighborhood is very much desired.

I currently have a single family home under contract in a highly desirable area, set to close next week!  

I might adjust down with a newer/extensively renovated property or up with a very old one, but I don't have a firm formula for doing so.You can always make a financed offer.

One to the state Real Estate Commission, one to the local board of Realtors (even if he isn’t a Realtor they should know) and one to the Managing Broker of the firm.

Yes but, often the properties require so much work they aren't worth buying or they are in an area that either has zero/ negative appreciation or they are in less than desirable areas.