A variety of things could have caused this.That said, what you've described above is not so untypical in terms of the steps of the process for a fix and flip loan.  

I like this idea because it reduces the potential vacancy I could have by doing a short 3- to 4-month lease that ends in April or May, then starting over with a year lease.

Hey there Tony, I am also trying to network with other investors in the Calgary area so if you have any success finding a meetup I'd love to know about it too- if I find anything I will send it your way. 

There are very successful STRs here, you just have to know the best areas to be profitable. 

Keep it short and sweet: thank you for your application, the unit has been leased to an earlier applicant. 

More exposure means more interest.Regarding your contract, you’ll need to check the agreement terms.

In terms of the permitting process, an architect that can self certified drawings would reduce the wait time to receive the permit. 

Is it a viable option and what could I do to increase my success rate when taking this opportunity?

Especially in a commercial lease, I'd make sure you feel very comfortable with the terms or have an attorney review them... not just because you will own the building, but since you'll be living right above them.

I own 20 acres of land valued at approximately $80,000, and I want to build two short-term rental (STR) units on it.For context, my family already owns two long-term rental (LTR) units in the same general area.