Networking How did you finance this deal?

They do seem possibly open to seller financing the difference of $172K.

The benefit is significantly less red tape compared to working with your traditional local banks who also do new construction financing.

Hey @Raven Ye Mahar, so you should call the city and make sure but if you are renting it long term, you shouldn't be on the hook for any of the occupancy taxes.Nashville has a STR Occupancy Tax - https://www.nashville.gov/departments/finance/office-treasur...In the end, I would just call the city and get the deets that way. 

You may be better off refinancing with a cash-out mortgage and then financing the new property.   

While there's no strict requirement to match the original mortgage terms, reinvesting the full proceeds without financing or using leverage to enhance returns is key.If you don't reinvest the full amount, any shortfall ("boot") will be subject to capital gains tax, and depreciation recapture may apply.This post does not create a CPA-Client relationship.

On the initial agreement, it clearly stated that the buyer was going to be using financing and listed the terms of their financing

FHA is for sure not going to be an option for him, last option is purchasing from an investor with owner financing, or lease to own program where he will not need traditional financing. 

I’d appreciate any input you can offer on everything from financing to construction challenges.

He is open to seller finance with 0% interest.