I know they have a cap at 10.We have also looked at using local banks in the area but those terms are usually 3 years arms to ten year arms and 20 year loans so it lowers cash flow significantly. 

All are local to me in a non-vacation rental spot.

With that in mind, my first idea was to buy a condo or a house in my local area (Palm Springs, CA) and use it as a long term rental. 

I am new to real estate investing and looking to connect with any local investor.

I don't know if this is required in your locality but if it isn't get rid of it.

I love the town, but I guess that my point is that it has substantial challenges as a full time local.

Local market knowledge is absolutely critical, and it helps to work with someone who really understands the landscape and its nuances.As others have mentioned, it’s a broad question that’s tough to answer succinctly, but I hope this provides some clarity!

To maximize returns, ensure compliance with local regulations, prioritize owning the land, and offer student-friendly amenities.

Speak with couple hard money lender there are plenty lenders that are local and knows the market.

I wish I could go back and have all my loans with my local credit union who keeps them in-house to avoid all this.