The catch is they also don't cover intentional damage by tenant to the property. 

He would like to see a 7% return on his investment, interest paid monthly, and his money back when we eventually sell or cash out refi (~10 years out).Our current intentions are to live in the new building, rent out our primary, and short term rent the 3 units adjacent to our unit in the new building.

The best places to invest go off of your intentions, price point, and then the one's likely not discussed publicly.

I dont think you know how a contracting business is run , the intent is to make a profit .

Hey Jehu, Most commercial lenders will not finance the property if the intention is to live in the property.

The intent is torefinance them once I am done with the rehabs and I want to stay clear of theseasoning restrictions often seen on conventional loans.

My rehab cost crystal ball is broken; I intentionally broke it 20 years ago.

The Section 121 Exclusion helps you avoid capital gains taxes.The IRS classification of income as a "Flip" for Real Estate Dealers is based on a few key factors including "frequency" and "intent". 

His intent is to totally gift the property to his daughter as her inheritance. 

Paul will not be returning to Johnstown, but I suspect he will be entering the country with the same intentions under a new business name.