I am a first time “investor” so looking for advice. I currently own my primary residence on a conventional loan. I have equity but not enough to get another loan on a property I have my sights on.
the land I want to purchase is 2 acres in one the last open/rural zoned pockets surrounded by $600+ PUD homes. The 2 acres is buildable, with utilities already, surrounded by horse pastures and a golf course. My goal is to buy the land ( asking price is $650) and spend another $150k to put a modular home on the lot to rent for $3000/month. It was recommended to me by a broker to do a DSCR loan and am waiting on actual numbers and if it would even qualify. eventually I'd like to build a permanent primary residence for my family on this land, and convert the first modular home we would rent into an ADU. I realize that this idea is spearheaded by my personal interest to the property and long term goal as a primary residence but am hoping that the idea to rent it out and use the cash flow to not only get the DSCR loan and pay for itself is in fact a smart idea. If it's not a smart idea any other ideas ?
Also, if we do get the DSCR loan on the land and modular home, rent it for a couple years could we then convert it or refinance it to a traditional mortgage. Is that even necessary. Will the lender allow us to build for the purposes of owner occupied residence ? I feel confident that we could qualify for the DSCR and use the cash flow to pay for itself and we have other ideas for the property to produce income ( if it’s allowed) but my fear is in 2-3 years when we are ready to build on the land for ourselves, we will be stuck.

A possibly simpler version of this idea is buy the land and put a larger modular home up, the one we eventually want to call our own. Rent it for 1 year (I think there is a 6 month minimum for renting under the QSCR loan right?) and then we move in and call it our primary residence. This would avoid building after securing the Loan but still want to know HOW do we make it our primary residence after a year. What is the process ? Is there a penalty in doing this?
Thank you!