My strategy would then be to lease at least two of the renovated units, increasing occupancy to 90%, which could improve the chances of securing favorable terms for refinancing.I haven't pitched it to the seller yet.

If you are not already working with a realtor that is well versed in STR and knows ALL of the requirements for STR, do yourself a favor and reach out to @Josh Green.

. :) As I've dug a little deeper, I found many favorable experiences with virtual  CPA firms.

If you are looking for cash flow and you are coming in cash, things will work in your favor.

These are great places to invest where prices and rents are favorable as well as the landlord laws. 

I hope things work out in your favor! 

Additionally, in my market, a lot of these properties are located in areas where price-to-rent ratios are extremely favorable.

Also if it's for a BRRRR, it can change the economics on the back end in your favor. 

That creates a really nice price / rent ratio which is favorable for investors looking for cash flow.

You will need the cash to build it and I doubt banks will be favorable with lending terms.