The traditional way of doing this, and the easier way IMO, would be to talk to potential private lenders ahead of time. 

I'm familiar with the traditional methods, so instead looking for advice from real-world experience.

in addition to whats been mentioned above, i would go one step further and talk with 2-3 traditional banks before buying the property to see what their requirements are for a "cash out refi". 

Your RevPar should be greater than your traditional leases.

A bathroom this size is very easy to do.Materials will be. 2x4’s and plywood Concrete board or green boardBathtubBathtub faucetBathtub p-trap plumbing assembly VanityVanity topVanity faucetVanity faucet supply linesVanity p-trapToiletAdditional toilet wax ringToilet supply lineDrywallDrywall mud and tapePaintThe above are the basics that every bathroom rehab will need.

We have made plenty in San Diego with just traditional buy n hold and fairly minor value adds.  

I just bought a house (in California) under my name using traditional bank loan (so no LLC or Corp).

Traditionally, a borrower can get an approval for an FHA loan with a FICO as low as 580.

We purchased ours with traditional financing, we put 20% down and rest was financed by the bank. 

This includes: Tile, grout, thinset(chosen by client), shower pan liner, drain, tile installation, mud bed for shower floor, bathroom floor, concrete boards for walls, shower faucet and shower head (ORB), seamless glass door. 2- new toilet and hookups 3- double sink vanity white shaker with soft close. 4- granite counter top to match either the kitchen or the tile ( to be chosen by client) this includes a 4 inch granite back splash 5- bathroom package kit ( toilet paper holder, towel ring, towel bar ) ORB 6- exhaust fan 7- double under mount sinks with sink faucets and all hookups.