What made you interested in investing in this type of deal?

This is going to be a very individual scenario, but most likely it isn't worthwhile.

Are you open to renting it out, or is this strictly a flip?

This is a VERY valid concern in this process unfortunately. 

Word of mouth How did you finance this deal?

Wondering isn't the owner suppose to disclose this fact.

I was just on their website looking at the permit process:CityofSac-STR PermitLooks like 90 days max until you get a conditional use permit but still reading as it seems a little unclear:A short-term vacation rental may operate from a location that is not the operator's primary residence for a total of 90 days in a calendar year.

Just trying to help is all I’m trying to do. 

;-)I am starting to read books, audiobooks, and this site to builda basic understanding of RE investing in 3-6 months.

Even this is an incomplete list.Worst of all, the main reason not to make this loan is that you will not hold a first position-lien against the property.