They sent a very professional slide pitch deck that showed all of their justifications around that specific market, e.g. employment market, housing shortage data, the new developments in the area, the air bnb data, etc. etc.They also stated the numbers were conservative (7 year to reach the target returns) and that likely it will be year 4-5.

Hello I own a Ryan homes model home and they only have six houses left to sell.   

You now have $5k in unreimbursed expenses, and 2 houses; one with a $200k mortgage worth $250k (giving you $50k in equity), and; one with a paid off HELOC, value and mortgage unknown, but presumably with more than $165k in equity.You should also treat the $5k unreimbursed renovation cost as a debt and pay it back (even to yourself) accordingly.There is no tax due because not only did you not make any realized gain, but there was no sale. 

2) Screening applicants3) Executing a leaseAll complying with Fair Housing Act, federal, state and local laws?

Some markets are so saturated a house may bring in more as a LTR than an STR.

Considering airbnb's downtown, long term rentals in up and coming areas near burns park, fixer uppers...pretty much anything except student housing - that feels hard!  

And I'm trying to understand, Is it the house I'm getting qualified for purchase, or is it loan for the reconstruction of the house I'm being approved for.

Best bet would be if you could move to Lehigh Valley and house hack there.

I self manage 26 houses and it’s easy to do.

My primary exit strategy in building is to sell the house to an owner occupant.