Permit eligibility is based on region (usually the west side of town) and density (quantity of surrounding STR's in the area) as well as percentage of landscaping and minimum parking requirements. 

The key is that the gap funder is usually someone you know and have a relationship with.

Conventional loans will require 12 months seasoning for cash out and are usually capped at 75% LTV 2.

I think by the description these guys are brokers .. so they tack on fee's to the direct lenders fee's   Kind of like peer st..  

you can usually find them on FB or Meetup. 

I also usually compound the return by reinvesting my payments, so the present 12% fund effectively returns 14.38% which is pretty awesome.  

Fund of fund raisers need to do a much better job including descriptions of both double promotes and possible implications for LPs investing through a fund of fund vs directly.

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean?

The filing fees with the SEC are usually minimal, as you’ve found.

Usually the numbers don't work to build in these neighborhoods, unless government tax credits, etc.Do you see the problem with your two statements:"The turnover costs could/will be high"and"How much more damage could they do?"