It’s not that it can’t be done — it’s that most lenders want:One unified lease covering the whole property, not multiple individual ones.Market-rate long-term rent comps that match what they can verify (hard to do with individual rooms).Here’s what a lot of investors do to make it work:Have a single “master lease.”

Keeping the tenant 2–3 months can work if you lock it in writing: interim rent amount, access rights for inspections/contractor walks, clear move-out date, and a rent‑back or temporary occupancy agreement with a deposit; expect slower permits and subs over holidays, and don’t start demo until you have vacant possession to avoid habitability issues.

As long as it's a market where the imbalance resolves itself the tenants should return to the units that best match their financial profile but it could be a persistent issue in markets where oversupply can't resolve itself.

Do you have a refundable damage deposit?

Pick one, put in serious offers with no assignment clauses and a decent earnest deposit, especially non-refundable and you’ll get plenty of attention. 

WOW.. 40k plus deposits on a home to be built.. ??? 

All materials are very durable and last for many years.Renovation cost is a function of the following:Property selection: We only consider properties needing low-risk cosmetic renovations—appliances, paint, flooring, countertops, and window treatments.Market competition and tenant preferences: Our finishes match what our target tenants expect and what competing rentals offer.

Have you adjusted your funding strategy to match the current market?

We embrace S8 applicants, but screen them just like any other applicant.Many have an entitlement mentality and try to leverage their S8 voucher by pretending to be helpless:1) A percentage won't apply because they expect a landlord to waive application fees for them.2) Many cry broke and expect a landlord NOT to charge them a security deposit.3) Many of those same S8 tenants trying to avoid paying a security deposit, won't make an effort to call the list of nonprofits we send them that will pay their security deposit if they apply.4) A lot of them try to avoid paying for utilities.

Re-read your contracts, document your correspondence (and attempts) with your builder and demand documentation to match up any payments/draws with what's actually been competed on your build.