I think its rare you can take a model you're doing in this are or product and just move it somewhere else or on to some other product.To me, If you have a niche that works and you're good at it and the numbers are strong,  I believe you should put everything you have into that business model and grow it and grow it fast while the getting is good. 

Most non-qm loan products will never have a 95% LTV due to the inherent risks associated with these type of loans not being traditionally backed by fannie or freddie (investment banks).

When I saw this product offered through CapFree Xchange and Appreciation Homes (out of Dallas) I was hesitant.

However, short term rentals are much less passive than long term rentals and are essentially a hospitality business, which is in and of itself required a whole additional layer of knowledge and expertise.With regard to your question about private lenders, it’s important to draw a distinction in terminology between “private” and “hard money.”

"Question: have you ever filled out a spreadsheet of cost and lifespan of each product of a property?

You can proceed with a cash out or rate and term refi up to 65-75% LTV depending what product and terms you choose.

Im not a tax expert but it seems like this would be an important distinction as the fundamental structure of the financing is different and dictates who is earning interest income.

For your part, it might seem like a free roll of the dice to go to court, but there are surprises and landmines along the way, litigation always takes far longer than anybody expects, and the time and emotional expense of fooling with litigation are energy drains on more productive endeavors.

I cannot assist w/ the acquisition of the property but do have an FHA product that is specific for home improvements.

Seems doable, depending on a few factors will determine what the right product is for you.