Until Fed begins to cut rates I’ve found alternative lenders in some cases to be competitive with banks on construction debt when considering the totality of factors (rate, leverage, depository relationships and pre- payment penalties).

This space is also getting competitive, but you could try listing for monthly stays only on Airbnb, VRBO, etc.

@Timothy Blackman- thanks  ...get some referrals for lenders from friends / co workers ...contact them all on the same day with the same criteria and ask them any questions you have and  ask for some scenarios ...compare the  feedback and service they provide ...pick one lender to get pre approved with ,,once you have a property - contact all lenders again for pricing options for the actual loan you will need ...hopefully the lender you chose for pre approval will be competitive in their pricing ..good luck

Of course, many find that they are up against competition here, too.

Also you want to look at the competition. 

There tends to be less competition from every day home owners who need to move in the spring/summer before the new school year starts and thus the possibility of having more leverage on sellers.

DIY Basement BuildoutFinishing the basement for around $25K could improve your STR competitiveness and increase rental rates.

Also most of my units are super nice so rent is already at a higher premium than some of the competition charges.

Challenges included navigating owner hesitations, coordinating renovations within budget, and managing high expectations for occupancy and pricing in a competitive rental market.

Watching you two go back and fourth is more insightful on what to expect from possible colleagues and competition.