The REPS-9 election prohibits grouping short-term and long-term rentals, emphasizing the need for careful strategic planning.

While this may exempt it from being classified as a rental activity, active participation remains a requirement, necessitating compliance with three tests: spending 500 hours on the property, dedicating at least 100 hours (and more than any other participant), and performing all the necessary work needed.Additionally, long-term viability and consideration of depreciation recapture are important concerns.

I would supplement with some HELOC funds as long as you calculate the HELOC payment when considering the investment property. 

I use it on my long term rentals and they have a policy for my STRs as well.

What I would really concentrate on is analyzing the deal as a traditional long term rental without you living in the property in 1-2 years.

As long as the LLC member(s) are active participants in the rental operation, up to $25K in pass-through losses can be used to offset other ordinary income on the personal 1040 (subject to MAGI limits).

Long term appreciation2.

Don't use it as a long term financing option.

Sheena,I'm not familiar with Florida but long term rentals have continued to outperform almost every asset class over the past 15 years. 

I don't doubt your claims are false at all but I didn't purchase a property 23 years ago to experience the long-term benefits.