You'll get to write off any home expenses against your rental income as well. 

That's why these screening processes exist, if anything ever comes up like this and you get that red flag, and not everything aligns, if you're getting those red flags this early on, imagine what will happen when they are Planted into the home?

Add in the social media gurus and I think expectations for RE investing can get skewed very quickly. 

I will get in touch if I decide to move forward on this.

For an SBA hotel loan, the SBA may guarantee say 30% of the loan and a traditional bank takes the next 50%...total LTV/LTC of 80%...will vary by business but it's higher/better than the previous replies (otherwise, you would just get a traditional commercial loan without the SBA involved). 

@CJ Moulton Be careful not to get "analysis paralysis" looking at demographic data for any market.

We are starting to get near max occupancy on this location. 

I would get rid of it due to the liability.Also who would be responsible for lugging firewood upstairs?

And financing from what I've heard is very difficult to get.

If so I would thoroughly ready this to see what they require and what you agreed to.I doubt you can keep your permit if you refuse their inspection.If you are doing everything as you should, you shouldn't have anything to worry about.