They often offer more flexible terms and customized interest rates and repayment schedules.

I would suggest looking into your local market first obviously you need to find out STR restrictions or permit needed.

You need a mechanical permit for the HVAC, and you need a residential construction permit or EZ permit open in order to pull the mechanical permit.

ADA units are more expensive and require more from the permitting process to construction.

The permitting process and the availability of reasonably buildable lots is a concern.   

Also you have to constantly look for customers and you competing with highly competitive hard money lenders.Lendng under $50k is great idea because most HML don't do loans less then 100k.So I found that traditional real estate is much more passive and easier but I still be interested in private lending on a deal to deal basis I such deal falls into my inbox and it passes all check and balances. 

Have to do a dirt or excavation permit in town. 

So a nicely decked out  cabin I bet would rent real well for STR purposes  Not sure about permits etc..

Shannon,I have some customers that purchased in and around Salisbury, NC and they have found some good deals in terms of purchase price to cash flow ratio on investment rentals.

You'd need to create custom Tags to make it work, which isn't hard, but its a bit more time consuming.