I am very handy so would do any upgrades and he would pay for materials.

This gives the owner client peace of mind as well as some protection.Non-humble self promotion: I own and operate Blue Door Residential Property Management (and am fully licensed) and would be happy to talk about your needs if you want to shoot me a PM.

Then you need to materially participate in the activity, here are the tests to meet MP: https://www.investopedia.com/terms/m/material-participation-...I recommend tracking your hourly diligently in a material participation time log.

I watched Pace's webinar to promote the program, and he consistently claims you make $1500-$3000 when lending $1k.

In this case, the material cost AND install costs will vary, so having an idea before you even meet the contractor is important.  

The costs involved are about $100.000 all in (permits, engineering, architects labor , materials ) - I’m thinking that would be a better long term Investment than another SFH . 

Building positive relationships with tenants can increase their retention and reduce turnover, promoting consistent rental income.Consider FHA loans with lower down payment requirements if you're starting with limited capital.

It'a cheap for a reason (although a lot of the stuff promoted to foreign investors looks cheap but is in fact expensive).

The materials are outstanding and my understanding pre covid the networking and in person classes where very beneficial .

Zoning, subcontractors, mother nature, P/I during construction and rent up, your loan doesn't get "fixed" until after construction, material inflation, etc, etc, etc.You have taken most of the risk off the table with family financing and family construction.