so are you the borrower, and are you trying to negotiate with the lender? 

Hi Ryan, How much would you need to borrow on the construction?

@Christopher Phillips   maybe i'm reading this wrong, or it works differently in NY, but a 6% seller concession normally means the seller is giving the buyer 6% of the purchase price to use however they want in the transaction - be that for closing costs or principal reduction or down payment, whatevs.A seller typically doesn't have a say of what can and can't be included in the borrowed amount, that's up to the lender and the loan program. 

If the borrower defaults then we own a property minimally valued at $1,700,000 while owing about $635,000, or equity of $1,100,000!

If you have not performed rehab, you typically will need to have held the property for 6 months before borrowing based on the appraised value - otherwise, in those first 6 months you will be limited to 80% of your purchase price. 

If you HAVE TO RENT by the ROOM to make ends meet, you are surviving on borrowed time.    

(To determine how much money you would have to borrow at today’s higher interest rates.)I’m guessing you should probably stay put unless you have a chance to take the tax free sec-121 money then MAYBE it makes sense.

Like other posters have mentioned - it will likely vary by lender - but generally most states will be OK with either Individual or LLC but there are a handful of states that due to various regulatory interpretations will require a LLC (or require a LLC to have prepayment penalties on the loan structure) Borrower = Individual or Entity AL, AK, AR, AZ, CA, CO, CT, DE, DC, HI, ID, IL, IN, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, NE, NH, NJ, NM, NY, NC, OH, OK, OR, PA, SC, SD, TN, TX, UT, VT, WA, WV, WI, WY Borrower = Entity only GA, FL, IA, MT, RI, VA (1-4 Units) Prepayment Allowed Vested Entities Only IL, NJ

well thats a long slog trying to do it with rentals.and the limited amount of captial you have currently which from your post is borrowed money .To me you need to find land develop it and build it out.. thats where you will make big to bigger bucks the quickest then peel some profits off if you want to get into the rental game.

The nonsense that DSCR loans do not matter if they are not on a credit report and the advice above has real consequences on borrowers ability to accomplish their goals for investment but also ability to buy their next primary.