Hey Zahra,Have a lot of clients working down there and you are correct, it has become a great place for investors.Biggest differentiator that I have seen has been on appraisals after the repair.

Would you try and steer the lender towards considering comps for individual townhomes?  

We would buy a house live in it for 2-3 years then on to the next and rent the old one out.

We are the most productive STR in our area and bring a lot of revenue to the little town.

Our bank will let us use equity that exceeds 25% across multiple properties that are either owned free and clear or where they hold the first so long as the deal still cash flows with however much cash is brought to the table.

The devil is in the details.   

If so, be sure the studio was permitted. 

We are at the top of this boom cycle, and the time is not right for the average buyer to make that move in many areas.Keep in mind that the faster/higher the boom, the faster and more severe the bust. 

I'm having a very hard time with them and on the verge of losing my earnest money on a house purchased to flip.

You should do all the same level of due diligence you otherwise would to buy the property.