Also be mindful of existing or proposed restrictions - I don't recall anything extreme proposed in Ludlow or Dover, but Wilmington is being very aggressive in all but eliminating STRs.

This policy will provide additional coverage above what your existing policy covers.

Also syndicators massaging debt to make deals pencil to entice LP investment and are now struggling with existing deals blowing up.

The fact that you're already working with an existing property and clear goals for redevelopment shows lenders that you’re serious.

Grandfather rules rarely apply or work for STRs in most locations and apply to existing STRs there.

Another option is assuming the existing mortgage, which would involve contacting the current lenders to explore formalizing the arrangement and having the properties deeded in your name while taking over the loans.

This would cover the $675K needed to pay off the existing HELOC and mortgage, leaving you with about $200K after payoffs and closing costs.However, it's important to consider the cash flow impact.

@Dave Kush You can send them a certified letter that it is no longer a smoking building and you would have to use an existing term like quiet enjoyment or not disturbing others to enforce. 

If you find something, go hard money and then spend the next few months re-leveraging the existing debt.You can have your cake and eat it too, just be patient my friend. 

This policy will provide additional coverage above what your existing policy covers.