My guess is that the institutional big banks would have a problem with it, while the smaller local banks and non-bank lenders probably wouldn't care as much. 

I would recommend that you get out to local meetup events, as that is where you will make the really deep connections to help you get rolling. 

I do not want to pay a plumber to do the plumbing for this work.  

And the locals in Highlands have been fiercely debating STR's and regulations for the last few years, so I wouldn't be comfortable buying there.

We would love to connect with investors, as well as investor-friendly realtors and property managers in the northern Alabama region.Any insights into the local market or recommendations for neighborhoods to explore further would be greatly appreciated.

When dealing with federal, state, and local NOFA (notice of funds availabilities), do government funds allocated for affordable housing often get depleted from too many developers requesting funds for new projects?

Hey Carlos, I am local to the area and have helped investors with this.

Let the agent know that while you’re interested, the property’s condition and local comps don’t justify the asking price.Taking a warm, conversational approach can make negotiations smoother and improve your chances of getting the deal.

Locally my observation is that the need is more for low income young and working vs college student.

I financed this property using down payment funds from 403B and a local commercial bank. 15% down from personal funds. 85% down from community commercial bank. 3yr balloon, 20yr amortization, 7% interest rate.