But basically with a construction loan you will need to have considerable cash involved - most costs need to be paid for and then the bank will reimburse at certain checkpoints.You may want to start with some smaller value adds inside the existing house to maximize rent from the house hack. 

Give them a little extra motivation to maximize property income and keep things running smooth like butter.

I suspect maximizing the investment might make it slightly less desirable as an owner or at least the renovations might have lower ROI if sold to a homeowner.

After discussing their goals, we realized they would like to maximize the property's value while also including me in the process, given my background in general contracting.

The property manager should be involved before you buy any property to give input on due diligence, how to increase income and reduce expenses, and to make repairs or improvements to maximize occupancy.Excellent property management is critical to your success before, during, and when planning to sell or refinance.To your success!

This allows investors to maximize their returns without having to directly face the more restrictive regulations.What do you think about this alternative? 

You have to make sure that whatever company you choose will maximize your profits. 

Initially, this might seem like a great idea as you can maximize rental income by renting out bedrooms kind of like college student rentals.

There are plenty of STR-savvy CPAs who can help you navigate the rules, maximize tax benefits, and make sure everything is done right.

In terms of maximizing your returns you want to compare the interest to an alternative.