Any tips for other creative lending sources such as private would be greatly appreciated.

But -- rant incoming -- as @Erin Spradlin, resident midterm rental expert in our household would probably ask you, why limit your targeting to just one demographic? 

However, an essential exception emerged in the 1990s, allowing specific rental income to be categorized as non-passive.

Once complete get it rented and order a new appraisal and refi the HML out and put it into long term debt.You can also do all the same things listed above and source a private money lender that would fund the project.

I renovated the house to have energy efficient windows, doors, and energy source (solar panels).

I speculated that he was wanted by the law, was involved in a nasty divorce, or owed money to some money source that does not recognize Federal Bankruptcy, take your pick. 

Our Situation:Two couples, new to real estate investing, each with one working spouse with a high income (W2 and 1099) and one non-working spouse plan to go 50/50 on a new construction STR which will not close until Spring of '25. 

Curious if anyone else in the Chicago area knows of quality lead sources to identify tenants for house hacking? 

Not sure … I may just reach out to some friends in that income class and get their thoughts.  

Still a great market for owner occ/house hack, but again it's not a high income area so rental rate is going to top out a bit in my opinion.