Some hosts also accept bank transfers, but you’ll want to ensure payments clear well in advance of their stay.

Loan: Bank Statement, $4,300/month PITI.

As expected the banks I've talked to thus far (that I have great relationships with) are skeptical about funding.

Borrowed money from friends and family to pay cash for the property as the bank would not finance it until it had been remodeled, made livable, and brought up to code.

Most people don't qualify for that relationship.The seller financing will not show up or affect the credit score.However, when applying for a loan at the bank or especially a Federally Guaranteed loan, they ask on the application for ALL Loans, whether  or not it shows on a credit report.

I do have reserves to cover contingencies.Let's just say, I'm satisfied with those numbers.Had I had to use a bank, I would have had to put down 20% for $33,000, plus closing and my payment on the remaining would be $1400 PITI including HOA. 

The bank they are using with that offer is now saying my site prep bid came in way too high and not approving me (so far. still in process).

Quote from @Stuart Udis: You can also reduce your transactional costs by using a bank construction to permanent loan with an earn out.

Someone with $10M in the bank in cash just needs to put a lot of money to work and time value and tax write off is more interesting to them than a hungry investor in their 20s that has never found a deal.Honestly, books are great, but they are about as "boiler plate" as you can get as I'm sure you're discovering.

Most US mortgages are based on 30 years and without assurance on insurance, why would banks continue to make mortgages in higher risk areas if the potential is complete loss?