Open to being corrected if I’m wrong, it happens.In that case, where tax code doesn’t specifically provide support for a scenario we need to rely on other secondary sources - hence the Pub reference.  

If you have 15-20% of the total project cost (land purchase, building cost, loan cost, etc) with an experienced GC, you can try commercial loans for new construction.

You haven’t provided any financial information so there’s no way anyone can answer the question about how not to take a loss.  

- NSS Lending LLC- Goldstream Capital Loan- Gap Funding partners - Tyrone Harris- AD Mortgage- FlipCo Financial

Most investor loans will require a minimum down payment of 15-20% of the sales price with having healthy credit and a few months of reserves. 

You are providing the time to look at properties and they are providing the money. 

MTRs should be 1-3 bedrooms, furnished, and provide facilities that the target group appreciates.

TIA Hey Sam, Are you pricing this out on a conventional loan?

His idea is to help people analyze long term costs faster that others, providing a nice competitive advantage. 

Sharing an article published just last year on BP on this exact question:Short-Term Rental Loans: What Are the Options and How Do DSCR Loans Stack Up?