What you want to do is combine pieces of both of your options together. 

She decided to combine two rooms to make a gorgeous master and a "pocket office", versus keeping the 4th bedroom.  

For example, they can finance up to 70% of the ARV meaning, if you have a perfect 70% deal (purchase price and rehab are withing 70%) they will cover those cost for you.you will still incur closing cost, taxes, and insurance cost though for example.True 100% financing (ZERO out of pocket) typically requires solid relationships with private lenders or a combination of hard money lender and private lenders.

This one strikes me as having some devious or less than ethical elements.

My personal residence payments are less than 15% from combined personal income.

Usually buy, hold, cash out refi and buy more with cash out funds combined with my own funds and this has been a good equation for me heading to #12 closing Monday. 

Can your combined income support two mortgage payments in the event you don't get a renter quickly? 

To combine the two into a land purchase and construction loan you need to demonstrate on paper exactly what you plan to build and that the planning desk allows this without a conditional use permit/hearings/delays/neighbor complaints tying you up to wait 24 months to start.

This could indicate a premium market with potentially higher profit margins on flips.Housing Structures: Zip code 13224 shows a high number of multi-family structures, particularly those with more than 50 units, suggesting a potentially saturated rental market or a demand for apartment living.Market Outlook Combined with Google Search Data:13224: Witnessing a notable 53.7% surge in median sale prices for 4-bedroom homes and a 19.7% uptick for 5+ bedrooms reflects a buoyant market for larger residences.

It will decrease your cash flow as your single payment will be higher than the multiple payments combined.