In my opinion, that's better because it's more passive for you AND there's an opportunity for upside (within 12-24 months) simply by leveraging the sponsor's expertise with forcing equity.

You also need to be aware that custodians are passive in nature and simply process transactions at your direction.

What if any of these negative scenarios are simply perceived by the other party?

I simply explain to the seller that I will be improving the value of their collateral.

The only way I see you being denied is if the property does not pass the physical inspection, which simply requires a clean home with no safety or health risks.

I personally don't like condos simply because of the HOA fees that kill most cashflow and because they can be restrictive.

I tend to buy in the Southern half of the US for 2 reasons:1) you get much higher year-round occupancy rates in the South & it’s simply tough to earn a good ROI in the North if your place sits vacant for a big chunk of the year2) Culturally, the Southern half of the US seems to be a lot more accepting of STRs regulation-wise.

To use simple numbers: if you buy for $100K, you will not be able to simply pull $100K out a year later.(1) is it pretty easy to refinance a rental condo? 

I simply limit my loan amount to what I would purchase the property for which is usually 60% of the value. 

Contractors, Property Managers, Financial providers, Insurance providers, Real Estate Brokers and list goes on and on, you get my point.I know it is very easy to want to find a deal and purchase something quickly, I see it happen over and over again, people coming from out of state or even people coming from the Tampa, Orlando and Miami areas who start looking in the area, and find deals which "SEEM" like a good deal simply because $140k price tag is low compared to the persons market, and they make the purchase, they end up with a property with barely any equity, and they end up renting it out at a loss, example below:The below is fictional examples and estimates, always do your due diligence before investingPurchase price: $140,000.00Rehab: $15,000.00Closing costs: $4,000.00Holding Costs: $3,000.00Total Purchase price: $162,000.001% of purchase cost: $1620.00 mo.