I am not opposed to people turning homes they lived in into rentals under the right condition. 

We bought properties in some of the nicest areas in town, focused on appreciation, and houses that just didn't need much from us because they are in excellent condition.

It's hard to beat California weather.

Are you still working to satisfy any Conditions/Stips (such as providing documents, etc)?

Airbnb handles the payment so I don't worry about it and I've found that the typical tenant that is willing to pay 2x the LTR rate is going to keep the property in good condition.

With weather getting more and more unpredictable, it just seems like something a tenant could complain about that, even if you didn't do anything wrong, could land you in hot water. 

You might consider giving a notice to the entire building that you will be doing a walk-through on a certain date to check the condition of the property - you have a right to maintain your property and access all units if they are home or not with proper notice.Also, make sure that your notices have a person named as UNKNOWN OCCUPANTS listed.

However Property tax's some of the lowest in the coutnry and property maintenance same thing if you buy a stucco home with a tile roof.No real major weather threats like many markets  IE hail storms wind storms etc.. can get windy but thats common.. 

What are the most promising alternative lending strategies for financing RE developments given the rising interest rates and tightening credit conditions?

The condition, age, and future capex issues are more important in my opinion.