If they have passive losses from the STR, they might be able to offset some of that W-2 income through the passive loss allowance or by qualifying as a real estate professional.

Even with a professional inspection you can't predict the future.

They are two young professionals with money, they have extremely high demands, they "know already" because they talked to their "xyz professional buddies already." 

You will want to get a professional inspector and contractor that you trust to walk the property on the outside if you can't get in. 

I'm really interested in hearing directly from professionals in the field: What are main challenges contractors and developers are dealing with on daily basis while building homes?

The people appear as guests and will tell their story, then you google that person and you find they are partner in XYZ syndication.Linkedin: Look for anyone that has a headline of "I help business professionals create passive income through real estate".This will get you a lot of sponsors and/or capital raisers for other sponsors.  

Readers are advised to seek professional advice.

You still may have negative cashflow, but it may be smaller, so is addressed by rising rents sooner.As a professional in the Build-4-Rent space, let me make some corrections here. 

Aside from disclosures, which I think can sometimes hinder a purchase or a sale, it's a lot harder to play dumb as a seller when you are a licensed professional. 

Readers should seek professional advice.I believe the Note creates liability for the loan, the mortgage creates a lien on the real property that secures the debt.