You will be able to put 5% down on a conventional 2-4 unit with no self-sufficiency requirement. 

(again from pub 523 - Unlike the ownership requirement, each spouse must meet the residence requirement individually for a married couple filing jointly to get the full exclusion.)

I see the following rom the newly required affidavits that I assume based on the following portions in the affidavit that Canadians and other treaty country citizens are allowed.

Those loans typically require 10-20% down depending on if the property needs any rehab or not. 

The reason has to do with a base line effect, a couple with a stable income that is required to qualify for a mortgage will usually make enough to qualify for a 200k house.

Many also have a minimum on the lease period, such as requiring 6 or 12 month leases.

You mentioned "architect fees" and not all the others that are frequently required so I am not sure what your quote includes.

@Sue K. noted the issue for Calif - - can't ask and it is NOT a reason to deny.Seems to be a BI G issue in this elect year BUT . . .My screening process requires a Credit Check and that requires a SSN. 

Another possible option would be to do a cash out refinance to get some of my rehab money out of the property and only leave my 10-20% downpayment (whatever the HML lender requires to purchase the property)I would love to know if this is possible or if there are any issue with the plan, especially in the refinancing into a primary portion. 

The lender and brand will require experience when buying or building a hotel asset.