The lender assumes the risk of dealing with a known quantity: his borrower.

Sure, taking a trip cost money, but a few hundred or thousands of dollars is a tiny percentage of a real estate investment.

I have been offered an exclusive Deal by a local "friend"/ semi-mentor in my small town.  8 standard 2/1 apartments -  Quad, duplex, duplex, 1970 Dated buildings, little neglected but liveableOwner finance: 20yr 6%rate with 20k down------------------------------------------------Total purchase 400KCurrent NOI: 41k     Cap: 10         (Tax,Ins,Maint, Util)Gross rent 4500/mth-----------------------------------------------Upgrade, Est repairs: 60k After reno: NOI: 59K   Gross rent: 6100------------------------------------------------Loan pmt: 2865/mth,    34k/yrCurrent Cash flow: 531/mth,  6,378/yrAfter reno Cash Flow: 2131/mth,  25,578/Yr-------------------------------------------------Added info- -Property line Joins with (growing) Community college-Tiny town-The Buildings are Currently "uglyish".- Current Rent is 150$- $200 behind market avg.I am very comfortable in single family homes in this town (own 18 SFH rented and performing well).

These are tiny municipalities.

Quality over quantity.

I have seen a couple of new-build STRs that need refinancing, and they were hard to finance due to their being tiny homes, cabins, rural multifamily (with no comps), etc. 

Your post comes off as someone who made a very unsophisticated deal to try to make a tiny spread and wound up incurring costs and liabilities they didn't anticipate.

I am a builder and I have some land and want to build a tiny home park. 

Might as well build a tiny house.  

And turn a TINY profit on the spread.