I've done this many times.While it may be counter-intuitive, the process you have outlined is inherently more risky.  

Also many of the proposed propositions To increase property taxes for the commercial / land sector were defeated but very narrowly as well as state rent control .

I am a very conservative person in terms of finances and gets scared when there’s too much risk. I

But it's risky as well. 

If it's a financially tight deal or you don't have the money to properly support and maintain the property, especially if you don't have much "skin in the game", it's a riskier proposition for the lender. 

You should always take into account the worst-case scenario when doing a deal to see if the risk is worth the reward.

Commercial loans don't have this, so the risk is higher and thus the rates are higher.

A long term flip is risky without cashflow I would have either rented out spare bedrooms or gotten something with at least one additional unit.

I think closing the purchase with the QOF as the buyer (like assigning the purchase agreement from you to the QOF) would be less risky than closing it in your name and then transferring the property to your QOF.

An additional risk I might add is treating your STR as just a real estate investment instead of what it-a hospitality business.