My business partner and I have a monthly fix/flip forum we hold in Scottsdale and mainly just work with flippers/investors. 

Thank you in advance for any constructive feedback. 

The policy was $2200/year ($1.1M Bldg coverage and $1M Business liability coverage in this apartment LLC) and I haven't had a single claim in my past 5 year history.

However, that was a fluke.Warranty companies are in the business of making money.

Is it common for developers to use subsidies to cover 100% of the construction costs without needing to obtaining debt or raising equity?

These policies have been to the detriment of small businesses, the self employed and to large extent  true GDP producers.

There are people who have an entire business helping you set up and design a STR relatively quickly (3-7 days) depending on size of home and complexity but you are going to be paying a bit of a premium but you do save on the headache.

If the use of the funds are for business purposes, like investing in real-estate, you will have an easier chance of qualifying for a loan documentation and income wise.

Their company is pretty great at not responding to their communities people , not following local law yet alone their own lease agreements The uptick of lot rents I get it it’s business but also driving out affordability for people which again it’s a business so some may say that part is just the territory , but not following lease agreements , hiring poor management and then doing nothing about it when it’s escalated is a reflection on their business aswell   best of luck. 

-Why not include a contingency line item in your construction loan rather than raise the contingency funds from your equity partners?