I don't plan to pull the trigger till I've networked more in the area and have built a little more in funds for the investment.  

News articles are sometimes are triggered by corporations with underlying interests.

If I were going to pull the trigger, I would probably go to a reia meeting and see who needs such funding.  

If you get into a full demolish there are other endorsements over the general policy limits that trigger as well, i.e. debris removal.Every time I have seen ordinance and law used, it pays the total costs of system upgrades to the damaged and undamaged portions of the property, subject to the limit of the endorsement. 

@Jeremy Hostetler Havent pulled the trigger on anything yet.

It seems like the property will pay for itself comfortably with a 1.67 DSCR so you could always pull the trigger and then pivot down the road to a different investment model with the STR if it made sense.  

I talked it over with a more experienced investor and finally pulled the trigger...Result?

I try to use lenders Ive utilized in the past for simplicity, and relationship.My past loans have been in the same range your mentioning; but perhaps this exact loan (Amount, LTV, Multifamily, OOS, Investment, Cash out) triggers an industry standard higher origination costs???

Make sure you use the city or cities you will be in this will trigger investors keywords and bring it to their attention. 

The first lien holder would probably then foreclose himself, as your foreclosing would trigger a default provision of the mortgage or deed of trust.