If you guys paid cash for the property & want to avoid borrowing funds, but need money to pay the contractor & start producing income, then you could possibly do a lease option (aka rent to own) allowing the tenant/ buyer to choose design elements or have input on the design (so that they feel they're getting some kind of customization & added value), this would be of course AFTER collecting an NROC fee, (Non-Refundable Option Consideration - not a down payment but gives them the right to purchase at a future date - usually 3-5 yrs) typically anywhere between 5%- 10% of the market value of the property.

But in the past have ended up paying off 4 of the 5 loans within 4 yrs by snowballing. 

they are disposable items these days that last 5 yrs tops. 

I would run the numbers at worst case for at least 3 yrs to see if you can make it.  

I have about 8 yrs. experience in the rehab / remodel business and 5 yrs. licensed Realtor.

Take a simple example$250k home with 20%down @ 3.5% = $898/month of P&I (now)$250k home with 20%down @ 6% = $1200/month of P&I (5-8 yrs ago)Clearly there is a big difference of $300/month or $3600/yr… or to state it a different way the interest rate alone accounts for a 1.4% expense difference ($3600/250k).

A seems like the safer bet for long term tenants and the 18 yrs olds might jump around every year. 

Netting 20K after closing costs and capital gain taxesb) Owner finance (Contract for Deed): 137K sale price,  20K down, 15 yrs, 9%, $1200 a month.

Our plan is to live there for about 5 yrs. 

i acually live near reading now, acually grew up in reading it was top ten for many of things mostly negative but as of 2 yrs or so they have built an imax theatre and right across from that a high scale apartment complex with tenatants paying upwards of 1,200 and up for a unit with gated parking and all.