The US is in an 8 year economic expansion.

@Tony Castronovo It's going to be hard to parse economic data now that we're getting close to an election cycle.

I do not focus on hotels however I can share what I noticed about a decade ago on the last downcycle.In economic boomtimes hotels tend to do very well.The reason is lots of travelers for business and leisure.

In my option, if you start with something more economical and less restrictive to build, such as Tiny Houses and Air Stream campers, I think you can be on to something good.  

5 national Factors:Interest RatesInflationFlow of Investment FundsBusiness cycleCataclysmic EventsMarket Indicators and Trends :Population TrendPath of DevelopmentOverbuildingSocial economic TrendEmployment TrendPrice ratio from distressed properties and retail sales Are there buyers in the Area?

Does anyone have some advice on an economical way to address this issue?

Also it’s important to evaluate the general health of the homeowners association to ensure they have proper reserves for capital expenditures etc and you won’t be hit with special assessments. 

Upon doing some digging of the town I found lakeport is a tourist destination with the lake, resorts and casinos projected flat economic growth over the coming years, a population that has decreased a hair but remained relatively flat, the crime rate index is well over national average and has increased over the past 10 years even with increased spending for public safety.

Perhaps a high probability of a health, safety, or high-ticket repair item.

If the property is not in move-in condition and has safety hazards like hanging wires, ripped up floorboards, ripped up drywall, leaks in the roof, anything that could cause a health concern to the person living in the house… Then you will be able to close it with the standard FHA or conventional loan… in that case you would need to look at your renovation loan optionsPossibilities include :FHA 203K for primary residence with as little as 3.5% down of the total need (acquisition + rehab costs) Fannie Mae homestyle renovation loan (5% down) 100% fix n flip loan - that gives you the money for the acquisition In all the money for the renovation both labor and materials (The only caveat to this one, is that the maximum LTV is 65% of the ARV for first time investor, 70% for an experienced investor) ARV = after repair value If looking at buying a multi family property, like a four unit, if it’s the primary residence, go with an FHA 3.5% of total purchase… unless you have 20% then Go conventional.