Not sure how many STRs you have thus far, but if you are just starting out, I highly recommend looking into the mountain markets due to year round tourism, it is the safest route into the short term rental world in my opinion and markets like the Smokies and Blue Ridge, GA are established and could end up a much lower risk!

ESPECIALLY if your income is less than 80% of the Area Median income (AMI), you can get a Home Ready (Fannie) or Home Possible (Freddie) program which offers even better rates than regular conventional, and only requires 3% down EVEN if you're NOT a first time buyer.

Can you have 2 regular trash bins per unit?

Why did we take this route? 

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.