However i have a few questions to make sure my numbers make sense.I have spoken with a lender and estimating 8% rates.

@Michael LiguoriIf you are looking to invest locally I would join local real estate investor associations and go to meet-ups to network with other investors.

Pleasure to meet you Brian.

I haven't seen too many from our area on here yet.....most I have seen are down south near Provo.Do you attend any local meetings?

Maybe meet with other investors and see if you can find someone to partner with to be your eyes and ears on the project.Is this area considered desirable, given its location between Milwaukee and Chicago, and proximity to Lake Geneva?

Hello Yishi,I deal with 1st position mortgages on New Construction, I would say that investor capital can be all over the place in terms of rates. 

I'm basing what I see off the 1% rule for SFH, and cap rate values based on 50% rule for multi-family.Again thanks in advance.

HELOANS are an option, but you have to calculate your blended rate and compare that to a new first lien.

Adjust rates seasonally and consider offering discounts for longer stays.Guest Communication: Clear and prompt communication is key to positive reviews.

You can meet local investors by registering to attend real estate events in your area: https://www.biggerpockets.com/forums/521-events-and-happenings6.