I imagine the regulations will get stricter. 40% commercial property tax, 15.5 % hotel tax stays, 2.5% cap (15% less STRs), 3 strike your out rule, verification and vetting through AirBnB, etcBut why would you not invest in an oligopoly?

I recommend a full background check, credit check, rental and employment verification (at least 3x the rent income) as well as walk the current property that they live at.  

One great thing about being a broker is that you can build your own identity.

Percentage off of list price isn't a very useful metric, in my opinion...For example, if two nearly identical houses in the same neighborhood are listed for $100K and $200K, respectively, and you can get a 10% discount on the $100K house and a 40% discount on the $200K house, which one is the better deal?

I have the found that my default rate is almost identical to the historical rates.

@Joel Owens  @Moses Kagan - My thinking, after reading your comments, is to scale back on my original plan and take your suggestion of minor variations as follows:The building has two types of units: 1 & 2 Bedrooms with identical layout by type.

No so this time...Lowes had the identical brand/model and was a little cheaper plus offered free delivery.

Your DTI will be based off your last 2 years tax returns, with verification you are currently making at least that much. 

The 401K loan willl also not show on the credit report, but it will show on the paystub or when they order a Verification of Employment (VOE) from your employer.  

Your story here almost identically mirrors mine - my wife and I started renting out our guest bedroom on Airbnb, and then when that sold out we started offering up our own bedroom and crashing at my M-I-L's house.