They are looking for gap funding and you offer them the 17k at a 12% APR with interest only payments. 

I’m hoping to learn other ways to not use all my cash- to scale to the next level.

With current prices and interest rates, you're not cash flowing with LTRs.

The difference is that he will not be making any payments on that cash during the build. 

They didn't have access to BiggerPockets where they could learn how to calculate cash-on-cash, ROI, ROE, or print reports with colorful charts and graphs.Earn money.

I will be prepaired to act swiftly when the payment is due.

Then they'll accept their down payment coming from a 1031 account. 

If payment isn't made OR if they aren't bought out in time, they own the common equity 100%.

Do you have access to the paid version of airdna to find comparable properties that are cash flowing at 500-650 a night? 

This might be a workable scenario for me.Lack of experience would not kill this deal for us but it would depend on a few things.Usually the biggest challenge for newer investors is in the amount of equity you have available to infuse into the project.You need to have a cash down payment to secure financing.With 25% Down you would be in a multiple financing offer situation where we're just fighting to get best deal possible and batting off Wholesale Account Execs left and right.