If your project has limited amenities - don’t comp to fully amenitized assets with a pool / fitness center / carport and garage parking / etc. 

I understand there are many limitations to short-term, or even mid-term rentals down there now, but hoping to see some insights on areas where I might see more of a demand. 

The only real way to do it, as I see it, is to go scorched earth and nothing is off limits.

Penalties of these Federal charges may include:30 years in prisonUp to $1 million in finesThey have a "statute of limitations" - (with a third "T"  ;-) of 10 years from the date of the transaction - 10 years from now, you could get a very nasty call and hopefully, you put your reserve money in a good account that grew to cover legal expenses**********************************************And the universe could blow up as Doc says in Back to the Future " But, granted, that's the worse case scenario." 

Maybe being a limited partner with some of the really good syndicators out there is an option to this route. 

Can I use my current homeowner policy and just increase the limits?

It's a bad situation when you have a property that only serves an extremely limited pool of potential tenants, i.e.

Aloha Jose, as many have mentioned based on the limited info you gave there shouldn’t be any issues finding a lot of lenders.

@Robert Brock, I guess my advice is not really any different than I would say to someone wanting to be a residential wholesaler: you need to add value to the transaction.Often times, having the deal tied up is the value, but more often then not, in my limited experience with commercial wholesalers and residential, the wholesaler has no idea what someone will actually pay, so they tie up a deal at too high a price and then add their fee that turns a bad investment into a horrible investment. 

Earthquake fault zones, flood plains, and high fire hazard areas are off-limits.