If your project qualifies for EPP (Express Permit Program), then you don’t have to secure permits in the traditional way.

Qualified renters can opt to pay a non-refundable monthly fee instead of a traditional deposit.

And there is a lot of appreciation potential.For someone just starting out, I'd suggest focusing on traditional long-term rentals before jumping into short-term rentals.

I was looking for partners in my network who wanted to JV on this property, but they wanted to know for certain that the title was clear since it was through a wholesaler and not "traditionally" through a realtor.   

I was planning on building the home in the traditional stick built style in my budget but am wondering if doing prefab may save some money/have other benefits.

These lenders often have more flexibility with underwriting and may not require traditional income documentation.

With it being a difficult property for an investor to find traditional financing for, how would I go about assigning a realistic valuation for the property if we were to entertain a sale?

The idea is spreading, and could spread to some other spots here that have traditionally been STR friendly. 

-> Funding: you can consider as options mortage brokers who can scout/compare the best offers in the market and you can also consider public funding programmes that exists as an incentive to renovate and bring houses to the market, either for tourism or traditional rental.As an example, on the traditional rental there is a funding program ("Arrendamento Acessivel") that funds up to 90% of the project and can be used to cover part of the renovation costs, as well as, part of the purchasing.

.- The 203(k) will allow you to bid on properties that need repairs that won't qualify for a traditional mortgage => less competition => better purchase price.You will need to find a great local contractor you can trust to supply the required bids to qualify for the 203(k).- After closing, you can do some of the work yourself to save money, but the program doesn't allow you to pay yourself.You will want to buy a Class B property, maybe Class C+, in an area that seems to be improving.