Is this a common method or not?

Jordan, Across MN in the heavy tourism areas, STR PM's are very common.

As Sean Wagner mentioned, the city of Chicago has adopted their own regulations on charging what's commonly referred to as a "security deposit" you need to do it another way. 

It was written before the days of YouTube, so it's not full of the common nonsense where authors sell a course, send you to their website for downloads, or write a follow-up with additional "secrets" they forgot to put in the first book.Long-Distance Real Estate Investing by David Greene was another good one.

Common examples include difficult grading, or an irregular lot orientation. 

- Commonly Allowed Pets: Which types of pets do landlords typically permit in rental properties?

If you can qualify with your income, DTI and employment history, conventional may offer better terms.

Were incomes and employment verified?  

Hard money, which is most commonly from an institutional lender (either a broker with a white label setup or a lending firm), is generally available, but you will need to meet experience requirements to obtain funding from these kinds of lenders.

Sewer issues in Chicago are very common which is why I ALWAYS recommend / almost require my clients to get them done + if there's trees in front or in the back of a property, there will almost always be plumbing issues + needed rodding.