This house is inside the city limits so we have to pull permits on everything....

The link is informative but seems limited to Arizona and might still be legal in other states 

We recently got an email from the lender who sent financing examples on properties that I had identified with my max limit being about 10% below asking price.

We did these things in one of our long term RV parks (terrible neighborhood, in the City limits, no pristine lakes) and we have a long waiting list of people wanting to move in. 

Including the gain during the time it was a rental.However, since the property was converted and is being sold as an investment, you would have to recapture any depreciation and leftover tax over the $500K/$250K limits.

It was organized as an LLC, a limited liability company.

I may be in some (limited) way the “responsible” party for loan payments, but have no “liability” should the payments not be made.  

You cannot do what you're trying to do and limit yourself to one company. 

It was a true trade-off as the Logan area is more limited in STRs and new builds so ADRs are higher and likely to stay there compared to RRG where the market is headed towards being flooded and there's the potential of ADRs going down like in Gatlinburg/Pigeon Forge area. 

I would try to limit the SF to about 1100-1300 depending on the floor plan.