Tourism will slow down, jobs will be lost, houses will be left with mortgages that need to be paid by investors who depend on short term rental revenue to pay that mortgage. 

Purchase something with Cash below appraised value using his money, pay the interest, and then get a loan pull all the $$ out, pay him back and then have a loan with essentially no money down?

On page optimization (essentially rewriting all your content so it’s unique and will help rankings), off-page (all your local listings, directories, etc), back-link building, consistent content creation, getting that content on high authority pages as a third party contributor, ideally linking back to your site, etc.

I am thinking about offering financial aid in a way that would benefit both parties by paying his 35k personal loan off and essentially offering a "re-fi" situation.  

Essentially, if you can prove that your payment is what you say it is then a lender WITH NO OVERLAYS should use that documented payment.  

It's called revenue opportunity.

Your contractor will need to draw up a scope of repairs and/or drawings for use of the loan $$, which should essentially be standard bidding process. 

If you call the city, they may want you to pull one regardless as it is revenue for the city, but a good GC will give you a better idea of what will need a permit in your area.

On the other, you are doing all the work, and essentially, the investor gets more return than you since you lose all of the time associated with the property.

On posts like this one, I find myself missing Bob Bowling.I think the issue is that you understand the ratio to which Cap Rate applies, but maybe not how it is traditionally applied.Cap rate is typically used to establish a present value for a stream of revenue within a set market: NOI of a MF property, in real estate.