Real estate investors are attracted to medium-term rentals to gain the benefits of extra cash flow versus long-term rentals while avoiding regulatory risks, high turnover, and intensive management of short-term rentals.While many investors are now turning to medium-term rentals to build their portfolios, the lending world has unfortunately been a little slow to keep up.

I strongly recommend a Phase 1 Environmental Site Assessment (also called a Phase I ESA).

Agreed, I don't see much benefit in lender financing if it's going to cost me more.

I don't have direct contact in the Acquisitions department as I work with their environmental due diligence team on Phase I Environmental Site Assessments.That said, I echo @Chris Martin in warning that the environmental and engineering feasibility process can easily take a year or more.  

Can I still claim the tax benefits for this property under my LLC? 

One big benefit is that these loans look at the property’s income rather than the borrower’s personal income, which can make qualifying easier for investors with multiple properties.

I don't think I'll be able to make too much money off of it, but want to get an idea of what I'd be getting myself into, I'm in the research phase.

I figured there might be some benefit on interest rates for the 25% or 30% down. 

Quote from @Devin James: @Jay Hinrichs Developments are definitely BIG money makers, but thats also reflected with the risk associated.That's why these projects take so much time and capital, but if you make the right judgements for project selection, and do all your due diligence, it'll turn out well. my 90 home project in Oregon  started it as dirt before covid .. got 1st phase built then covid hit.. had to fight through lumber sky rocketing and other material shortages and the of course interest rate spikes.. but the project ( and I give credit to my Wife and my GC's attention to detail) has sold Very well for record prices and profits .. its de risked now 22 lots left 13 are presold with big non refundable deposits and only 9 lots left that have no debt..

Chicago has solid cash flow markets and many appreciating markets with much lower cash flow.Interest rates are significantly hurting cash flow, so in my opinion, this is a time where you have to settle for low cash flow, knowing that there are also tax benefits, debt pay down, and appreciation happening.