Also, there is a lot of new competing rental supply coming online in these areas and a few of my developer friends mentioned to me they are seeing downward pressure on new build rents.

For an SBA hotel loan, the SBA may guarantee say 30% of the loan and a traditional bank takes the next 50%...total LTV/LTC of 80%...will vary by business but it's higher/better than the previous replies (otherwise, you would just get a traditional commercial loan without the SBA involved). 

Lower Property Taxes and a booming STR market.

I need financing, and a mentor. 

Personally I consider it to be more of a entry level neighborhood for first time home buyers and a blue collar neighborhood for long term renters.

Sounds like you've got a solid foundation and a smart approach by focusing on stabilizing this rental before scaling.

If you're willing to travel and hour and a half and be hands on then you'll most likely accrue more equity in your deal when you have a successful renovation but you're trading your time.

A giant laundry room, a two-car garage, and a separate living room.

In the back yard shaded area near that back door is another area perfect for a chair, a table, a small outdoor rug and a glass of wine next to an apple or some grapes on the table.

The scope of what I would do was far beyond, and a LOT more expensive than what they were thinking.