The issue comes with financing the rehab:Another loan and then cash-out refi?

I think he might have personal issues going on and does not have the money to continue working on my job whilst he is probably working on another job.

To do it correctly, take all of your appliances and major items (ie. roof) and amortize costs over the useful life.

I think the issue is how much is the job? 

I'd keep putting those struggles/concerns out there and in communities like this and you'll find people who can speak to those issues and give you some guidance. 

The issue is that it is considered commercial and most banks now will not lend on STR.Can someone point me in the right direction of who I should contact or where I should explore?

@Sarah Moore This issue is going to be resolved by the law of the state where the LLC was originally formed. 

-Lastly, any areas I should avoid that have had flooding issues in the past? 

I'm only working on 2 or 3 at a time these days, and I'm basically a concierge helping these people with title work that they weren't willing to face, and I'm helping them figure out issues on houses they were going to abandon practically. 

Only issue with this is that if owner needs money, you'll likely have to come up with the difference between the loan balance and the value of the home as a down payment.