Is it smart to take out a 40 year loan to get some cash flow?  

The 203K loan officers will allow up to 3 withdrawals on the loan. 

Would the person who takes on more labor to repair the property have greater preferred equity or is this usually treated differently?

The other contractors that I have worked with gave me a full scope with detailed line items of what will be fixed, how much the labor is and how much the material is going to be.

With the fires, labor and materials are going to be in short supply.

When you add purchase price, carrying costs for at least 6 months, materials, labor, real estate agents costs and taxes, do you have at least a projected 10% profit?

But it’s something I tailor the business plan to just in case.So your investor could get caught in having their loan called with not a lot of notice if things change.

Hotels are the baby of real estate investing and running a business.Unlike any other commercial asset class, hotels are extremely labor-intensive to run but can spit off ridiculous cash flow.

Quote from @Arshiya Taami: I am planning on purchasing a profitable business with its real estate included in florida and the dscr is 1.85. the problem is im just short of 600k for the down payment. that being said, can anyone provide me any reputable loan companies that will offer bridge loans and what their requirements are. thank you in advance! 

And as investors we should know this, but always anticipate higher costs and longer waits.EXAMPLE Breakdown of Costs:Plan Purchase: $1,500Permitting Fees: $2,500-7,500Site Preparation (grading, utilities, foundation): $20,000–$30,000ADUs require separate utility connections for water, electricity, and sewer but you can tap into existing utilities at the primary houseIn Raleigh you CANNOT split lots fee simple, so setting up completely separate utilities would not allow you to section off the ADU as of nowYour ADU must be on a permanent foundation (no wheels, no ability to move the structure)Construction (labor and materials): $100,000–$150,000Low-grade: $150–$180/sq ft averageMid-grade: $180–$220/sq ft averageHigh-end: $220–$250/sq ft averageLandscaping/Finishing Touches: $5,000Total Estimated Cost: $125,000–$200,000You could easily spend $200k+ with super end high finishes, custom designs, complicated sitework, adding a second story or more sqft, etc.