I would look at it as will the ability to have more people want to rent it overcome the convenience of close.

A few credit blips may be fine, but if there are credit issues, there must be documented evidence of disclosing a path for the borrower to overcome these issues so that they will be credit worthy by the time any balloon payment is required.

I know these are all problems that can be overcome though they are still issues at hand. 

These alternative financing approaches can help overcome the challenges of finding cash-flowing properties in a competitive market.Alternatively, you could look at more cash-flow-friendly areas. 

Any tips for overcoming this? 

Period.Whatever your concern is, the right price up front can usually overcome it.

I know commerical real estate is the way to go eventually, and all roads lead there, but how do I overcome this intiial cost barrier?

The plan was to put an offer on it, purchase it and run it as a short term rental.Any lenders out there that have overcome anything like this?

I'm looking forward to the day when I can help out others overcome the same challenges!!

But they overcome this weakness in IRR, by also using other measurements, which I wrote about - like equity multiple.