Rent by room / house hacking / co-living should deliver significantly higher cash flow than a traditional rental. 

I have spoken to lenders about traditional financing and also DSCR loans.

Another struggle i have with STR is replacing small items continually which ties back to pricing.

.🔹 Creative Financing – Traditional loans don’t always work for distressed properties.

I understand the crime concerns, but why do you think traditional financing is risky?

Quote from @Matt Wan: Can I purchase a property using a traditional mortgage without being physically present for any part of the process?

There are definitely some solid strategies that work well here, depending on your goals.Are you leaning more toward a traditional STR, or are you open to rent-by-the-room or medium-term rental strategies?

This would allow us to come to the table with less funds out of pocket on the front end when starting construction.Is the best way to complete the transfer of ownership through a traditional sale registered with the county? 

It sounds like you're cash flow negative, but not sure you have all the details/line items listed.

I think you're confusing the quantity of items with curb appeal.