Even including modest appreciation and equity pay down, the ROI is between 7% and 12% for a non passive holding (not good for an active holding)I can easily afford this level of negative, but do I want to?

Since you're looking at 5+, that is considered commercial, so I would seek out CREI networking groups.

Readers should seek professional advice.

This property I previously modeled is now active for $1.789M, if you check the model I was at $1.75M.

I have been interview these folks and almost down to the right folks.What I am seeking from the community is experience from those that have done this and have been successful but also those that have pitfalls to learn from those to either not make the same mistake, or do what works. 

Unfortunately very few who seek out these assets take the time to consider their exit and fail to realize they are the most costly assets to exit, let me explain why: Here's how that disposition process to an owner occupant looks: -You will incur turn over expenses associated with vacating the tenant in preparation of the sale -The natural buyer in this price point is the FHA buyer who will normally seek a 5-6% seller assist  -Passing a Section 8 inspection/preparing a home for a low income tenant is very different than the expectations of a home owner,   particularly the FHA buyer who cannot afford to take on any deferred maintenance.

A prudent investor doesn't seek quick riches through shortcuts.

So a bit of background. I've been in real estate for almost 17 years. I've been a licensed lender since 2008 and have flipped hundreds of homes. Starting a hard money lending company makes sense to me since I have hun...

I do know, however, that they are pretty strict about the STR activity in the area. 

Seeking either lien in amount of arrears, or refi of each if poss.Approx.