Many traditional banks won’t touch them, and even DSCR lenders will avoid them if the build out is done prior the securing long term debt. 

I would have asked you what your long-term goal is but you have already thought about it.

Does it make a difference for privacy (in terms of public records, so disregarding lawsuits)?

Plus, these properties are usually sold as-is, so an inspection wont change much.What experienced Flippers Do InsteadBring a Contractor Instead A 15-minute walkthrough with a good contractor will tell you what you need to know.Know Your Numbers Upfront  If you price in a repair buffer, minor surprises wont kill your deal.Use the Inspection Period (If Allowed)  Some wholesalers offer a short due diligence window use it wisely.When an Inspection Makes SenseIf you’re new and not confident in spotting costly repairs.If its a high-end deal or potential structural issue.If your lender or partner requires it.If you do need an inspection, find an inspector who moves fast and work directly with the wholesaler to coordinate access.

Here’s the situation:Purchase Price: $540,000Down Payment: 20%Mortgage Rate: 7.125% (30-year fixed)Monthly Expenses (Mortgage, HOA, Taxes, Insurance): $3,706Realistic Max Rent: $3,000As you can see, I’m currently short $706/month even with max rent.

To be successful in any business you have to let go of that fear and jump in with both feet.  

Bridge Loan to DSCR – Consider a short-term bridge loan to fund construction, then refinance with a DSCR loan once the property is completed and leased. 4.

Congrats on your success already!

He intends to turn it into a short term rental. 

Mostly on a long term scheduled with deferred maintenance.