Private Money or Hard Money LoanHow it works: Short-term loans from private or hard money lenders to purchase the lot and finance the construction.Benefits: Easier approval and faster processing, focusing on the property value rather than your income.Downside: Higher interest rates and shorter loan terms (typically 6-18 months).

Also, you could consider buying something with "hard money"; this comes at a higher interest rate, but you might be able to get into a property and either flip it or refinance it.

You also implied that we don't specifically price deals for our clients and the client's "rates and fees will be much higher".

If the management fees stay in Sch-E, it is exposed to ordinary income both at Federal and state level, which is way higher than SE taxes of 9.55% (15.75-6.2 (personal social tax already maxed out)).2.

.: I would go HELOC for sure that would be best as others were saying the lower cost for the money changes between paying a higher rate for a personal line and typically personal lines they want a higher monthly charge as well independent from the interest rate.  

One of the things I'm trying to figure out is if I'm better off getting a few lower cost properties or on higher priced property. 

Deal closed, higher valuation than purchase price.

There is no point refinancing the almost paid off property to buy another-just get a mortgage on the new property.hard money lenders are going to charge you a higher interest rate.

The profit was used to buy a higher quality SFH in the same area.

Also, I understand places like CA and TX have higher tax rates.