It is very segmented, but the right areas of the city really excite us as investors.

If the contractor/partner is bringing in capital to the deal, you may want to consider a structure where he/she plays two distinct roles. 

There are two distinct differences in insurance policies while home is vacant and being rehabbed. 

I also know restaurant's and food service, been in that segment for decades.

To maximize the odds of always having a reliable tenant, buy a property that attracts a tenant segment with a high concentration of reliable people.How do you find a tenant segment with a high concentration of reliable people?

For the next properties I purchased, I first identified a tenant segment with a high concentration of reliable tenants.

That makes a lot of sense for the different types of distinctions and figuring out how to talk to each. 

@Nicole LockwoodNo real distinction between buying an STR property and just ... buying a property in general.

While I agree that I think there is a segment of wealthy individuals who pay good money to keep themselves "hidden" --- whatever they do. 

But before you rush your decision, you need to realize one critical distinction: treating this transaction as a business allows you to deduct all business expenses against this income.