It's all fun and games until your bank freezes and converts your line for any number of reasons that are in the loan agreement.

But if I put the money into buying a house, with the leverage of a mortgage loan, I can still earn about 11% annually on my investment on the appreciation, even though there is no cash received for the rent.

They are bought either with SHORT term high interest (hard money) type loans or purchased in cash.

Statistically, I would bet that many of these properties could be at risk from a similar event before the reconstruction could even be completed.What is the new premium on a $5-10-20M insurance policy and how could it ever be recuperated during the life of the policy or length of the average 30 year loan? 

If it does not cash flow as a stand a loan rental don't buy. 

Do you have proof of loan approval?

Commercial loans are also tracked. 

If you include the costs to build in a purchase of the primary structure, then you can typically roll that into the final loan product.

He ultimately refi’d into a loan that felt hefty at first, but it freed him up to add another unit in the building.

There may be requirements to cover the trash service depending on the town.My first commercial loan was 30% down, 20 year term (adjusting after the first 5 years).