Lender here.There is a one-time closing Contruction loan out there.

He recommended a DSCR loan instead but the fees seem high ($55,500 to close).

Could you share more information, such as , did you buy it close to where you live, what softwares are you using to automate, are you self managing or have a PM in place for maintenance and bookings and also communicating with guests?

With an FHA loan, you are not going to be bringing hardly any capital to closing (compared to a conventional 4-fam purchase with 25% down).   

In theory, the bank could put in a lower bid than their lien for the starting bid.

Las Terrenas in the Samana peninsula is a good choice but I have a small thing for Bayahibe, close to la Romana.You can find property that are half the price of Punta Cana's and that you can rent around 80% of the year.

You can try DACA which has no PMI and limited closing costs.

I could technically get $332K out, so this leaves a little meat on the bone to cover closing costs, potential unexpected rehab issues, etc.

Get as close to the truth as legal in your state and clarify that you're not a huge capital group coming to town to slum lord the entire city, you're a hard-working guy trying to break out of the 9 to 5 (if that's legal to disclose) and being able to turn a modest income on a rental would be a vital step toward that dream of financial freedom. 

Account Closed - Cash flow plays are indeed difficult in Hawaii.