If you could furnish the rooms, I'd say that is best bet for cash flow.

Moving forward scaling with hard money loans may be the best bet and would avoid the headaches of living in a construction project. 

The Midwest is probably your best bet for a number of reasons.

But, I bet-ya it's also effective.  

@Brett Danehey, I would say that area is questionable, but I definitely lean toward the safer, more conservative side. 

Statistically, I would bet that many of these properties could be at risk from a similar event before the reconstruction could even be completed.What is the new premium on a $5-10-20M insurance policy and how could it ever be recuperated during the life of the policy or length of the average 30 year loan? 

PG's are worthless those that have PGs that are worth anything dont need gap funding they have the cash.this is a play for folks you know well .. not for internet facebook BP etc.. people that do this do it because they know you like you trust you and think your a good operator.Public has to many other choices that are much safer bet.. its not always about ROI with those with money..

Your best bet would be to find a portfolio lender whose niche aligns with your investment strategy.

Their clear incentive is to bet on falling interest rates between now and debt maturity.A small handful of owners are forced to sell due to a looming balloon payment that a refi won't cover, but you're not going to find one of those by driving the market when any commercial broker can just look up properties on that basis and start making calls. 

Again, knowing nothing about this particular company, my bet is that type of company will require money up front just to consider whether they can help you out.