I’m based in Michigan and looking for a reputable hard money lender to fund my first fix and flip project.

I would also connect with a CPA to make sure that you can do that with no tax consequence to be certain.

Your primary trade-off is now clear:Access Equity Now: Accept the $1,400/yr tax increase and the other tax consequences (like your dad's depreciation recapture bill) to get the DSCR loan now.Maximize Future Wealth: Leave the property in your dad's name, avoid the tax hike, and preserve the massive benefit of a stepped-up basis upon inheritance.The other tax questions (gift tax, depreciation, etc.) are important, but they are secondary to this fundamental Prop 19 reality.My immediate advice is to model whether the deal still makes financial sense with the higher property tax expense.

Any advice on how to get started and find a reputable private money lender? 

It is highly recommended to consult with a legal and tax professional before proceeding.Pros of deeding your STR to an LLC     - Liability protection     - Asset Protection     - Separation of Finances     - Tax Flexibility     - Enhanced Credibility     - Privacy and anonymity     - Easier ownership transfer     - Simplified estate planningCons of deeding your STR to an LLC     - "Due-on-sale" clause     - Increased costs and administration     - Potential tax consequences     - Need for separate finances     - Loss of homestead exemptionGiven the complexities involved, especially with potential lender issues ("Due-on-sale" clause), tax consequences, and the necessity of maintaining corporate formalities, it's highly advisable to consult with an attorney and a tax professional before making the transfer.

With something as big as the short term rental loophole, you want to make sure documentation is buttoned up and you know the tax consequences at the outset

I have been pretty active on these forums, have helped several investors secure financing and have built my reputation from the bottom.

Look into their reputation, check reviews, and confirm that they have a proven track record of successfully helping clients.

You and I and @Jay Hinrichs: and @Don Konipol: and other very experienced investors have been really clear about the consequences of not following the law and not using best practices.

@Joe Villeneuve Lol I could see that being an extremely frustrating situation on both ends and just end up killing your reputation before you even start.