Sounds like 506(b) would be the better option--if you go that route, be sure you have evidence that your investors were in your personal network as you can't generally solicit the deal.  

The "worst" case scenario is to have to pay off the 20k upfront and up to a year of regular payments.

The MASSIVE fines for operating an illegal Airbnb often go to the owner. https://www.reviewjournal.com/...Would you operate your regular rental with zero screening?

You use all of your regular professionals in their role. 

I'm leaning more towards going the 203k loan route due to not having to bring as much to the table.

@Joshua GibbyGreetings neighbor from the other side of the metro, Cherokee County 🙋🏻‍♂️House hacking might be your best route.

You don't always have to go the FHA route and could wait to refinance out of your FHA while continuing to accumulate properties and grow your portfolio.Just a thought and like I said, I am not a lender.

That's the route I would suggest to go.

Tell her rent is going up $200 at end of her lease.Start regular inspections as lease allows.

HUGE influx of people on a regular basis.