Quote from @Burke Atkerson: With over a decade of real estate investing experience and over 100 flips, I now provide private money & hard money loans.

Also, a few private lenders or hard money lenders might have some more creative terms for multifamily, especially if you're open to considering that route.

Clearly, shes not happy and an unhappy tenant usually results in more issues down the road, and you can bet they'll be expensive issues. 

You can talk to the bank about a loan; however, my bet is they will want some form of contract and scope of work and will only pay him at set milestones.

It's a stalemate due to affordability and either wages or prices give, I would bet the latter. 

Private Lender Partnership: Partner with a private lender or investor willing to take a second lien position to get you to 85-90% cash out.

I have heard of cabin / mountain market STR operators doing some kind of hiking package, or way to connect a guest to a private tour guide for an "upcharge" which gives the hike tour guide an income and the STR operator a nice upcharge too. 

For lenders, I have access to private money lenders or if you want to go the traditional route, I recommend checking out Coast to Coast - Jeff Weller. 

Another great option is the BRRRR method (Buy, Rehab, Rent, Refinance, Repeat), where you buy a fixer-upper, renovate it, rent it out, and refinance to pull your cash back for the next deal, and this is a good route because most private lenders can go higher LTV than on a rental loan! 

Some lenders offer creative solutions, like a cross-collateralized loan, where they use your existing equity as security without refinancing the duplex.Another idea is partnering with private lenders or exploring a second-position mortgage, depending on your lender's terms.