Leveraging a 1031 exchange is your best bet for deferring capital gains taxes while reinvesting in a new property.

I am seeking advice on finding equity investors or lenders who can offer more flexible payment schemes with low or no downpayment at the beginneing, particularly for construction projects with a timeline of approximately two years.

However, we do have the flexibility to rent it out.Our goal is to refinance the property, as we initially purchased it with an interest-only mortgage, and get it rent-ready.

This can kill a a project if you don't have flexible financing.Also, try to have multiple exit strategies.

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Banks and credit unions can also offer flexibility for investors that engage in strong relationship-building strategies, offering discounts and solid loans in exchange for borrowers willing to use the institution for other purposes (savings accounts, etc.).

So, you while many unexpected repairs are not avoidable, if you know where the flexibilities in your project are you can manage the project to completion by making these sorts of decisions along the way. 

This flexibility makes it easier for investors to secure financing and grow their portfolio.2.

These options would still keep your costs down while offering practical benefits that could attract a larger demographic of renters.Starting with one of these simpler conversions also gives you the flexibility to explore more ambitious plans down the road once you have a better understanding of the property's potential and your own budget constraints.Hope this helps clarify the options.

I think the best bet would be to surface it to all the local investor groups here.