There are two sides to every transaction: private and public..

•Explore private lenders or hard money loans if you need higher leverage, though the interest rates will likely be much higher.

There is running private credit and running MF and then their is portfolio mgmt.

If there are plenty of studios or private single rooms at the same price or cheaper than a shared-space room at your place, you will definitely have a hard time filling up.Are there extended-stay motels in your property's area?

Now most of my deals are a combination of our business money, bank money, hard money, and private money.  

I see some conservative areas here who would traditionally support private property rights coming down heavy against STRs.

Here in Orygun they dont allow bond issue for private development so yes if you get stuck with some major offsites its up to the project..

All is not lost, if you can find a seller of the apartments who is alos willing to finance the purchase for you;  Or look for a private/hard money lender.

Quote from @Marshall Robins: We can go up to 50% LTV as a private lender for what it's worth.

I’ve had great experience with private landlords in the past, and have found fellow pet lovers that didn’t charge pet rent, or accepted my larger dog (when he was alive) to live in an apartment without hassle.