However, the loans we get for this type of a transaction have to go through the banks/lenders in that country. 

If my goal is to refinance the property once it is rented and rehabbed, but I cant get a bank loan to pay off the hard money lender, what do people normally do?

We BRRRR our properties to add as much value as possible, pull out all of our cash and then some utilizing DSCR loans after 3 months seasoning, and reinvest immediately thereafter in other properties.At first we were using all of our own cash until we found a Rockstar Broker for Private Lending who didn't bend us over the barrel.

very complicated, seems like you'd need a public private partnership to make it work. 

I'd also suggest running some for-rent ads, to see what type of response you get.It's notoriously difficult to accurately predict ARV on these types of properties, because they're so niche, and the market for them is usually completely different than the market for more standard properties...For instance, a lot of lenders won't provide a mortgage on a property for less than $100k--and if that's the case in your area, that would mean that the only potential buyers for the property are cash buyers, which makes selling the property more difficult.  

I have an opportunity to work with a couple of private lenders.

"Lawmakers in the Florida House of Representatives are considering Senate Bill 280, which infringes on the rights of private property owners who wish to rent their homes on a short-term basis.

I haven't explored this much but I think it would be an interesting strategy (this is assuming you don't need the cash for the next ~3-5 years minimum):Invest the whole amount in something like VTSAX or the S&P500 or whatever big blue chip stocks a lender likes and pull like half the amount out in a loan or some kind of line of credit.

Most lenders look for BBB- or better investment grade tenant.There are so many other factors that come into play.

@Adam Bartomeo yes we figured out builders risk from a local company. locked our lender down as well.