Above 5+ units is possible but more challenging and rates are where you would expect them..50-65%LTV will be common for higher plex units, a common workarounds is if they have a US based family member or business partner with an LLC..Some investors or lenders have specific countries of origin that are restricted or even prohibited, check with your mortgage professional. 

The next steps will involve accurate construction cost estimates by a licensed contractor (or two) and connecting with a lender (possibly current local bank) for construction financing.

@Randy Horner It would be awesome if you could stop by their office to confirm that it's a legitimate business!

Gone are the days where you can buy a cheap 100 year old multi-family off the MLS, turn it over to a local property manager, and make a great cash on cash return out of the gate.

Justin Abdilla (a buddy of mine) would be a great connection for this. he's a local attorney here.

I'm in the Nashville area - let me know if you have any specific questions about the local market. 

But if you look at other global macro trends you see other things forming quicker and I won't get into that, but that doesn't mean this isn't coming.I'm very tempted for the first time ever to sit 100% cash and watch, I may do this as we enter first business week of June.

Now, other tax incentives like simple business write offs for expenses to set up the properties as an STR that’s most likely still something you can write off against your rental income gains.

Build relationships and don't treat every person as a transaction, and these types of things won't happen to you.We lend to plenty of investors who use the same wholesalers time and time again and don't try to do any of these things because the numbers work for everyone.Build a quality book of business and none of these things will be issues.

I'm not in the short term rental business but if they are independent contractors then you don't owe them anything.