If it is due to a condition of the property (multiple losses, unrepaired damage, etc.) it will be more difficult to get a regular company to write it. 

It is sometimes difficult to leave emotion out of it. 

A new construction loan Might be more difficult to qualify for than an existing structure loan.

They are more difficult to finance than a single family or multi-family project and have a number of building code requirements that add cost and many smaller GC's who you likely will be reliant on aren't familiar with these requirements.

The small loan balance lender will be more difficult to find, but someone in your local area should know or be that lender.  

For new STR owners it's going to be difficult to get going with more competition - but not impossible.

However, deals like this are a little difficult to come across.

@Barry Pittman  I have extensive knowledge of Jackson MS and up to Madison county.. these areas are very difficult for subsidized housing since so much of Jackson is already subsidized with section 8 and other state and city programs.. and since existing homes still sell for far under replacement value how do you build new.. ???

It is difficult to answer this without running numbers, I would highly recommend speaking with TrueBooks if you're set on them to advise on this.

@Mateo MonsalveThis is a difficult question to answer because we don't know what your objectives are.