Then compare it to a few others.

So it would be best for him to first understand how this would impact his taxes and estate planning then structure the sale based on that.

The build will be more expensive then buying outright.

@David LewisRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

If they are nice enough for AirBnB, then you are probably ok there as well since the stays will be short. 

@Chase AlexanderRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Are you trying to replace your salary then you can’t do it.  

Use a bridge lender that is okay with gift funds or Gap funding, then refinance at 3-6 months once it is fully ‘seasoned’ 

In your case, you are probably better off buying a break-even deal in Tampa then a deal with $200 cash flow OOS.

They usually collect all docs upfront and then underwrite once the appraisal is completed.