Quote from @Michael Baum: Hey @David Rutledge, the purchase of a small hotel is a very different animal than SFHs for STRs.Like @Luke Carl said, you will have to have some significant skin in the game.

Just remember you are spending time and money to improve a space that isn't yours and you're not able to take the improvements when you leave, ownership should have some skin in the game especially in a new build.   

Sounds like things have changed a lot since 2016, and it's helpful to hear from someone who’s actively operating in the area.I completely get that this is a different market dynamic.

You can go to a CU or local bank but they want a wad a cash from you for skin in the game and your going to have a rough interest rate. 

Obviously it is always a good idea to respect folks time, but find someone who also has skin in the game, investing where you are investing, can talk about their experiences, and also has built a network of folks who can support you after the transaction as well. 

Being based in Austin, you’re in one of the most dynamic markets out there, which gives you a fantastic foundation to build on!

As we all know, the standard way BP says to calculate cash flow actually leads investors away form long-term opportunity and leaves a lot of investors on the sidelines because they don't understand IRR and the multi layered dynamics of investing long-term.  

Some/many lenders don't like a 2nd mortgage behind their first (like the skin in the game), however there are both bridge or permanent financing options out there allowing you to leverage anywhere from 90% CLTV - 100% CLTV, but don't expect good terms...

The main risks I would say to watch out for are any family dynamic issues that could arise as things like this could lead to issues that didn't exist previously.

Remember, patience and diligence are key as you navigate through the dynamic landscape of real estate.