However, I cannot go with the traditional leading since banks need 2 years of tax returns as self-employed.

Additionally, be sure to have a solid business plan in place to present to potential lenders.2) In addition to a construction loan, you could also explore other financing options such as traditional mortgages, lines of credit, or even private investors.

If I understand it right it’ll cost a bit more in the short run due to loan origination fees and higher interest then a more traditional loan? 

@Tacuma Bradley - I know there are a few people who are successfully doing STR in Japan, and others doing more traditional LTR, and that they are successful. 

Here are some quick numbers for context.Purchase totalAfter RenosYearly RentsCap Rate (pre costs)Cap Rate (- $300 IRS, PM, INS)$62,240.00 $64,890.00 $11,760.00 18.12%12.58%$71,280.00 $71,530.00 $9,516.00 13.30%8.27%$37,116.00 $39,116.00 $10,500.00 26.84%17.64%$58,857.00 $59,857.00 $12,000.00 20.05%14.03%$49,501.00 $56,046.00 $10,740.00 19.16%12.74%All in, we're interested in any creative financing - traditional refi, portfolio loans, DSCR, HELOC.

I am no longer eligible for traditional bank financing, so I am working on securing hard money for my next property.

Keep in mind getting it to current HUD standards will still not make it qualify for traditional lending if you end goal is to sell it. 

It can actually be riskier (investment wise) as you are not getting a traditional check every month, but added responsibility that you will hold onto the lump sum throughout the 3 month tenancy to accommodate for repairs, mortgage payments etc... 

So a Joint Venture offer needs to be double an offer for a traditional sale to make up for the tax differential.  

I haven't used hard money, but I hear there is no holding duration requirement; some traditional loans require you to hold it for 6 months or 1 year.