The article I read had me kind of worried but I figured it couldn't be quite right.

I don't see how is the related, but you could easily relate to the contract and obtain the cost of this.in nutshell avoid these kind of tenants if you could.

I won't be investing in the riskiest/most supportable asset subclasses such as hotels, and tilt my portfolio the ones that have historically been more stable such as multifamily and single-family housing.

Here is a report from FEMA and the US Fire Administration that details the fire/explosion danger which you can cite to support your PM. https://www.usfa.fema.gov/downloads/pdf/publications/electronic_cigarettes.pdf

Any kind of feedback would be great.

What kind of returns can you get on the different scenarios? 

These kinds of loans are considered revolving debt and the amount can be used at any time and you are only charged interest on what you use.

What I wonder is the kind of condition you get your unit back.

From what I can gather they are bringing in an income of over $30k+ per year before expenses.What kind of red flags should I look for with a beach rental?

The rents in my area do not support a true zero money down deal.