If they denied you just because your rentals showed a loss, but your actual debt ratio was within tolerances, then they have crazy rules that wouldn't be applied by most lenders?

To figure this out Look at your income-to-debt ratio and do simple math.

Do you happen to have any additional licensure? 

Additionally, any change in status (active versus portfolio income) of your lending activity will have zero impact on the active/passive status of your syndication activity - they are still two separate activities that must be considered separately, even though they are held within the same LLC. 

I forgot to mention although I've looked online for Real Estate Investor Meetups such as Event Brite, Meetup, and Facebook Groups; if anyone has any additional information on where to connect, I'd be grateful for any further insight!  

Just curious, when do you plan on refinancing into long term debt?

If so, you can go Conventional if the debt ratio works out.

So if I have $65,000 invested in the property and its arv is 100,000 will i be able to get that additional 10,000 in cash proceeds as part of my "Profit" or is it only allowed to cover what other loan is on the property?

I do not have condotel experience, but a lot of STR experience where there is often fierce competition.Since you do not have control of anything outside of your four walls, looking inward you nailed it with top tier design, and of course price.Try to think outside of the box, adding something like an arcade game, pool table, additional bedding options (like Murphy beds). 

If the title was eliminated and they are permanently attached to the property, they can be considered additional units on the property.