I’m very serious about this and am going to put in any amount of time and energy necessary to get my business off the ground. 

They sleep two adults each, not large groups and  were designed by a well-known firm that specializes in energy efficient homes.  

Would it be best to make it a larger 2 bedroom 1 bath or 1 and 1/2 bath depending on layout? 

Can you believe you can do what they have done to a larger degree and be successful?

I’m going to start my search for my next one, a larger duplex next.

Though I have had good deals on larger rehabs from contractors as well (as I type this I hear them laughing hysterically - probably making fun of me in Spanish!). 

Depends on the State Regulations. 6.Seller SecondsThis is a mortgage issued by the seller to the buyer that is placed in a subordinate or second position to an existing first mortgage from a conventional lender; seller second can be a great incentive to buyers; can help them purchase by putting down less cash-leveraging their assets; second mortgages typically carry a higher interest rate than first mortgages, an advantage for the seller over other investment options; a seller second can open new opportunities for buyers in markets where conventional lenders are tightening their loan to value guidelines and buyers need a way to close the resulting financing gap; lenders who want to limit their exposure may agree to a "Combined Loan to Value" guideline that supports a seller second; seller seconds may help buyers reduce their conventional loan needs below the PMI (private mortgage insurance) level, saving significant dollars per month; seller seconds can also help in larger purchases, reducing the amount buyers would need to borrow conventionally, bringing their remaining loan requirement within reduced rate "jumbo" loan territory; some conventional loans prohibit secondary financing; second loans not disclosed to conventional lenders are illegal.sellers granting a second loan must file a lien on the property. 7.Lease with Option and Lease PurchaseA lease with option to purchase is an agreement that the leasing party can buy (or not buy) the property at lease end for an agreed price; a lease purchase agreement, the leasing party commits to purchasing the property immediately at lease end; the owner agrees to apply a portion of the monthly rent payment toward either the buyer's down payment or closing costs at time of purchase.

The biggest challenge was that we were moving from a larger, newer and more expensive home to one that was smaller, older and worth less than our current primary residence that we were converting to a rental.

The margins are much larger when it is volatile so it doesn't really change anything.

I filed on two of my larger beach-front units.