If so, maybe wait a year or two and save the money for the purchase.

Raise all $1.6 million at the outset, but call for the capital in stages.

Thanks for the replies. 

Since 75% of the proposed income more than offsets the PITI of the loan, it's a wash.  

When you become the builder , then the numbers work What he ^^^^ said.

Congrats on purchasing the investment property!

You are free to build whatever you want, sell the house once is finished, and the lien-holder (original seller) is paid off through title when the new house sells.

On the flip side, I am in the process of acquiring over $1.5M in defaulted DSCR loans form borrowers who are your age that put 25% down but had no money to fix any of the problems  = lost the renters and walked from the property.

@Ricky Sanchez One of the requirements of doing a 1031 exchange is that the tax-payer for the relinquished property has to be the same for your replacement property.

The problem with southern Wisconsin is that we don't have reliable snow coverage anymore, so you are limited to the summer season and will sit vacant for the winter.