I want to build a Pre-Fab home on land in Maui

[Kayla Ahsing]

Hello everyone! Your feedback is much appreciated. I have a few rental properties in Las Vegas and own a piece of land in Wailuku, Maui. I was in Maui in the summer of 2019 and had met with a Pre-Fab builder Fabmac. The total estimated cost for a 3/2 home was around 259K. The builder required 20% down to start the process, then I'd get financing for the balance of the loan. I met with a local bank to get information on how the financing would work on a pre-fab. I was told I'd need to apply for a new construction loan, where I think I'd pay towards interest for a bit, then I could convert this into a conventional loan once the home was complete. All this sounded great, however, my focus was on investing in properties closer to home, but I'd reconsider getting the ball rolling in the 2nd or 3rd quarter of 2020, then Covid hit. My goal now is to get this project started at least within 3 to 6 months. I'm thinking if I get this built, is it possible to do the BRRR strategy? After looking at the comps, I'm estimating the appraised value of the home could come in at 550k to 600k which is a conservative estimate. Also, I really don't want to use my own money for the down payment and I don't want to do a HELOC. Any suggestions on the best way to borrow the 20% down? And which would be better to get financing through, a local lender in Maui or a national lender?