Better to build from scratch or buy a wreck that is cheap and rebuild it the way you want.  

Not that it really matters I guess, except if you are trying to buy at auction...where you'll need cash.Yes you can get a regular loan to buy a house that is in the foreclosure processYes you can get a regular loan to buy a house that is an REOYour friend and the "Construction Loan" is assuming the property is a wreck...

Fast forward a few months, and they have non-paying tenants who are wrecking the place, and a MIA property manager who (understandably) won't put in the ENORMOUS amount of effort required to manage a property in a C or D area for a small-time client from another state.

I think the less risky is a long term, but there are plenty of travel nurses that come through who would gladly do a short term (furnished, so something to consider) and won't wreck your place.

It's title Triumphs and Train wrecks of REI in Hawaii.   

It sounds like the other additional issies related to the existing structure would also require some significant work for remediation, so there is definitely more to be analized in terms of the existing structure.In regards to wrecking the existing structure and building new, that would definitely be the easiest thing in terms of a Code Compliance perspective; however, I assume the financial portion of a project of that scale would be significantly more than any renovation work you want to do the existing structure.In terms of trying to add a 2-story addition onto the existing coach house structure(or any type of addition), this would Not be permitted without obtaining significant Zoning Variations (which have no guarantee of approval).

Don't pay seller late this is important to be able to refinanceGo find a w-2 job today, any job that brings in cash or gig money not uber that wrecks your car.

So I go upstairs and chat with the other tenant, collecting rent because he got in a car wreck and is housebound.

I bought a home in 1979 in EPA for 8k  it was a wreck of course and you took your life in your hands going there.. but man what a play that would have been to stack up on all those sub 30k homes back then :) 

The best deal of all time in 2021 is getting wrecked and it’s hard to believe in greener pastures for multifamily until they stop building new units at record pace.