No offense, but absolutely, positively in no way shape or form would I, as a lender of over 30 years, provide a loan to someone with no out of pocket capital.

However, what I've learned is that for the most part, if most of your bookings are with guests that have a positive history (Airbnb/VRBO), your rates are competitive (to possibly slightly higher because you stand out, offer more, etc.), and you've made your House Rules clear, then don't sweat the small stuff.By that, I mean- you'll have guests who have 5-star ratings but can still leave a mess or damage (other owners didn't report accurately or it was complicated) but you have recourse via photo evidence (your cleaners, etc.) to ask for reimbursement (or use something like AirCover, etc.).

Eddie I'm in a similar position as you with the same questions. 

Do not ask for their copy of the lease; act from a position of strength and give her the two options.

That would position you for the next project.

Is any body having issues with less than scrupulous lenders or getting approached by scam artists posing as landers?

I get more bookings from airBnB then from any other OTA yet AirBnB is the OTA I have the least positive feeling towards.I hope the new STR owners/hosts realize the risk they take if they choose to list on a single OTA.I think you have a good reason to follow what you believe. 

While it's positive after expenses and has potential for improvement in year two, it’s been a bigger hassle than anticipated and taking attention from other priorities and areas of our life with not enough return. 

If I were in your position, I would look for a bank or credit union that will give you a line of credit against the rental property.

If you decide to join, take their claims with a pinch of salt and conduct your own due diligence.My experience has not been positive so far, but I am hoping for improvements in the future.