Maybe your wife would be willing to take a lump sum based on the equity in the Air BnB. 

The real obstacle is not the STR loophole itself but the tax benefit that it's based on.

Would you recommend the route of a first lien HELOC based on the above situation and information?

Based on my research, I will need a builders' policy.

I understand the standard rate in the USVI is 6% but believe I should be able to negotiate down based on the expected sale price.

@David Cook this is why we’ve started using water based polyurethane on our hard wood floors.

DO NOT MAKE A BUY DECISION BASED ON TAX DEFERRAL, WHILE GETTING AN UNFAIR SHAKE ON THE INVESTMENT.

However, there’s an entire industry dedicated to financing real estate investors and business owners without relying on W-2 incomeIf your business is outside of real estate, there are bank statement loans or asset-based loans that consider your overall financial picture rather than just W-2 income.

If it were me, my max acquisition budget would be based on my worst case scenario - a flip. 

I recommend finding a US-based bookkeeper who specializes in real estate and doesn't have too much on their plate.