I’d love to hear your thoughts, especially if you’ve seen these challenges in your market or have insights into how STR investors can navigate this potential shift.

The market there has been exceptional for me, but not without its challenges.

I suspect that you'll have better luck with a local bank or private money, though it likely will still be challenging. 

I only ask because that is, in my opinion, the most challenging part.  

Both applicants lost their homes due to the hurricanes, which led to credit challenges.

The biggest challenge seems to be finding lenders that offer these loan products which is where I’m looking for help from the community with recommended lenders that serve Texas.The Fannie Mae (or Freddie Mac) options are preferred over FHA purely because of the (perhaps perceived) limit on renovation funds that the FHA option provides.

Hopefully, some of the lenders posting here can address that challenge...

Challenges?

You haven't even asked about your BIGGEST challenge - finding "trustworthy" contractors.- Most contractors will cut corners, or worse, once they figure out they won't be watched closely:( Your job will also go to the bottom of their priority list.Monitoring progress is relatively easy: hire that same inspector to go by weekly or before any payments to take a VIDEO of:1) What was done2) Quality of workmanshipOne other thing you didn't ask about, payments to contractors.- They all want 50% down or as much as they can squeeze out of you. 

Hi Soley, We are having lots of challenges with REsimpli at the moment.