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

HEre is a guide to each city's requirements: https://azrtr.org/compliance/Overall AZ is pretty STR friendly, but of course you need to choose carefully as you already know.

That is tough to afford a $500 rent on one income much less a $700 - $800 rent required by investors paying in the $70 to $80k ranger for houses near these distribution centers.  

Most work this way: Rates: 10% to 14% (Most Deals are 12%)Terms: 1 Day - 24 Months (Most Deals are 6 months)Fees: 2-5 points(%) of loan amount paid at closing (Most Deals are 3 points(%))Minimum Loan Amount: $50,000 (For loans less than $200,000 we charge $2,500 minimum)Max Loan: 65% of After Repair Value(ARV) 100% Rehab Financing Available (Require 20% of purchase price down payment or cross-collateral)Closing Timeframe: 48 Hours - 3 Weeks (Most Deals are 10 business days)We have private lending partners throughout the entire United States that cover the following states: AL, AZ, AR, CA, CO, CT, DE, FL, GA, HI, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, OH, OK, OR, PA, RI, TN, TX, UT, VT, VA, WA, WV, WI, WY.

The requirements, costs and regulation is different in every state.

The function you require would make the difference on any potential referral.

So in sum a downpayment does not include all the cash onhand you are required to have.

Obviously, 203k experience is helpful with a contractor, but not required.  

I have a leak coming from under the tub which would require removing and replacing the tub and tile due to the damage it is causing in the downstairs apartment.

Typically with a property this size you require the schedule E tax transcripts of the seller from the IRS.