I would like to have the option and flexibility of a hard money loan to simplify it, but that is not offered in my area, as I am in a rural and small town setting.

The goal is to create a simple, efficient Airbnb or mid-term rental unit.Size:183" x 183" (about 15’3” x 15’3” / ~233 sq ft)Proposed Layout:Bathroom: about 5’ x 7’36"x36" showertoiletsmall vanityKitchenette wallsinkcompact fridgemicrowave~6 ft counterMain roomqueen bedsmall couchsmall table or deskMini split HVACThe plan is to keep it clean and simple to get it income-ready first, then potentially upgrade later.My goals for the project:• Launch an income-producing guest house• Keep the build cost efficient• Maintain flexibility for short-term or mid-term rentalA few questions for those who have done similar projects:Does this layout seem efficient for a ~230 sq ft studio, or would you change anything?

If so, then there can more flexibility there. 

I would tighten your criteria with higher income to rent ratio, stricter rental history verification and clear late fee enforcement with zero flexibility.

Thanks Stacy - we're pretty sohpisticated borrowers but there's always an achilles heel on STR lenders... we are highly flexible on loan structure and can model options quickly.

Whether you have clients that need faster or more flexible capital, or we can refer deals back and forth, happy to explore it.What type of deals are you and your clients mostly working on these days?

I've found that I'm less flexible when all my units are tied up in bigger buildings.Are you looking at C-class neighborhoods where you'll get decent cash flow, or B-class where appreciation is the bigger play?

Hi @Aalek Baez, since the home is 20 years old and you have fair credit, your best move would be to look into FHA or USDA loans, which are often more flexible with credit scores and manufacturing housing. 

At 6.25%, you're essentially paying 6.25% to keep that capital flexible.

I feel that this is a good opportunity and there is a way to make this work, especially because the owner has been very transparent and flexible, but not sure exactly how.