It’s good to budget for unforeseen expenses.Regarding PMI, it’s worth discussing directly with your loan servicer since many lenders require holding the property for a period or reaching specific equity thresholds before removal.If market rents are $2,200–$2,500, hiring a property manager could help you optimize rent while taking the burden of tenant screening off your plate.

Also, $625 for capturing pictures and building a 3D model of the house to go on the website.That leaves $16,338 for adding two bedrooms, among various other mostly minor fixes and cosmetic stuff.I put 20% down on my loan.

Consider a 15 year loan.

In many countries foreign investors buying rentals can't get loans or loans at all. 

Possibly break loan covenants and can't cure default, lender takes back property.  

We are BRRRRing it and we’re originally going to rent traditionally, however we decided to look into it as an Airbnb, and when we put in current loan rates which will be near or at 7% when we are ready, we’d only cash flow about $150 a month 😱, but as an Airbnb our projections are around $1,300 cash in our pockets monthly. 💰 At this point is a no brainer 🧠 and we know if it doesn’t work out or we don’t like doing it we can always revert to a traditional rental. 

There was also a loan grant available from the state of NH for first time home buyers for 3% down payment assistance.

@Patrick Roberts & @Tim Delaney- which lenders/ loan types are good for 80%?

This should roughly take me to 150k per year and carry the loans for land and construction.

If you're a single mom with student loans, a car payment, and living paycheck-to-paycheck, then $20,000 would be devastating and a reserve is critical.