Just because it’s come down does not it will bounce back automatically in a timely fashion.

one thing is your lending your money way under what private money should charge. unless your just doing your friends a favor..

I am not in favor of growing via cash-out refi.

There are other areas that make good STR's that are overlooked by most in favor of the trendy areas. 

Cost to build is $350K (I am managing it all myself and calling in favors around the city to get low rates on materials and labor).

The numbers may not be that favorable in LA for this, I don't have enough information. 

Therefore, if you look at history, real estate has continuously performed in an upwards fashion while, like any other investment, has experienced short lived corrections from time to time.

I have learned to be in favor of finding the best market to invest in. 

Your pictures aren't doing you any favors.

Some local lenders familiar with Gainesville’s market (from what I’ve read in Bloomberg) like SunState Federal Credit Union and Ameris Bank have been mentioned favorably latley and might be a bit more flexible if they understand the repositioning story behind your property.