I'd just meet with some lenders that specialize in conventional mortgages and find one that understands your strategy.

I don't understand what the estimated principal reduction is and why we would add it to my total return.

They are too stupid to understand the risks as you put it.

An understanding of rental investments.

I’ve never done a lease option but I feel I understand those deals much better, even though they seem very similar.

Based on my understanding, there may or may not be a profit-sharing model involved.

Local banks should understand and it shouldn't be an issue. 

Just interview a few and see who you think would be the best fit and understands what you are doing. 

Basit Siddiqi Not necessarily...This law will force Airbnb to provide names and address of Airbnb hosts to city..From what I read this might give a reason for the city to inspect a Property of an Airbnb host.If I’m a host I don’t want to give city any reason to inspect my property.If host is living in Property and doing Airbnb legally in upstairs apt he might be ok but if he converted his basement to be an apt he will get fine from what I understand..I don’t invest in NYC but I know many who are hosts for Airbnb, I would be reluctant to host if I can be scrutinized by the city..This is a major win for Hotel industry...

Your intent was to have Proper repairs done, which I understand.