So, every non-government job your tenants have will vanish in the foreseeable future.

The lender is basing the amount they will lend on the income of the other STRs in town....I am trying to figure out how to deal with this...I really appreciate your time...Thoughts?

. :) Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

you would need to make monthly payments to the seller during the rehab, just like to any other lender, and then if it were a rental, you would want the rent to cover the payments plus all other expenses.you'd also need to figure out how to pay for the rehab - either out of pocket, or finance it somehow. 

Any lender, private or conventional, will have some hoops, maybe just not as many for private lenders...

Having trusted resources in market have been helpful in managing our properties and contractors especially when my non-real estate related consulting business is in its busy season.

I know NY lenders that can do 100% LTV helocs which might give you that extra flexibility.

Quote from @Terri Absher: @Jay Hinrichs STOA was the lender and the end buyer.  

It boosts their NOI, which can make a financing package more appealing to a lender and might give the client better pricing.

I have a lot of personal experience with BRRRR—both from building my own rental portfolio here in Memphis, TN and from helping both local and out-of-state investors successfully scale their portfolios using this strategy.One of the biggest advantages I’ve been able to offer my clients is structuring deals with hard money lenders in a way that allows them to acquire properties with less than $10,000 out of pocket in most cases which results them in massive cash on cash returns!