I’ve helped managed a few short term rentals that have been filled with military families waiting for housing to open up or waiting to close on their home purchases.

And the branch manager said he doesn't know of any big banks that does that as well as he's worked with a few of them. 

Then the other question is what are you doing so egregious that insurance or your property manager would not cover you?

Does the price, rehab, and ARV meet your percentage requirements after holding costs, closing costs, commissions, hard money fees, permits, & other soft costs?

STRs can have higher cashflow but higher turnover and needs active management and marketing.

For example a quick close to lower his carrying costs, paying his closing fees, etc.

Having trouble analyzing this deal as there are so many variables and I do not have the experiencing analyzing deals to make me feel comfortable taking the risk.Purchase price of the land would be $250,000 not including closing cost or fees, and construction for a new 3/2 home with an attached 1/1 ADU is estimated to cost around $300,000 - $400,000 finished.

Securing a sponsor can be challenging, especially when they have concerns about your capabilities to manage the property and keep it profitable.So, let me share a suggestion that might make a potential sponsor more comfortable:Offer to have them oversee the asset and property management aspects, including the control over cash flow.

Many lenders avoid these deals due to the low resale potential, but I'm curious if there are any loan products available for this price range, especially in markets like the MidwestAlso, does anyone know if any lenders are bundling multiple low-cost loans to meet minimum loan thresholds?

Even if you create a non-CA LLC, if you are managing the business from California, you will likely be deemed to be "doing business" in California and therefore likely subject to CA taxes.