Did you check to confirm they filed a form d with sec?

FHA loans are a great way to get started with a small down payment, but make sure you have some reserves for things like repairs and vacancies.

Those landlords that choose to artificially subsidize communities via suppressed lot rents do not generate sufficient reserves to set aside for inevitable capital improvements to the community’s infrastructure and aesthetics.

At the end of the day; you need more money to do something like this.MAX LTV on new builds is 80% LTC, Meaning if the build is $550,000 and Land is XAdd ($550,000 + x ) * .8 = LOAN AMOUNTYou would need to come in with MINIMUM 20% of the cost in addition to closing costs and reserves, $80,000 is not going to cut it for this project.

The down fall is a Heloc can "Never" be used as an asset or for PITI reserves required when buying a new Primary or investment property.A heloc can also cause major issues with credit and one slight hiccup or missed payment the bank or lender who is holding the Heloc can close or reduce your line of credit.

I think the uneasiness comes from not having enough reserves/ funds for downpayment and closing.

I would have reserves beyond that though.

Yep, as others have said when in doubt always contact to the city to confirm what you need to pull permits on.

. 😉  Lack of investment capital (money) ought never be the obstacle because if the deal is right, the money will always appear.Then, you’ll need great data sources both for identifying opportunities and confirming the facts.

At the point that we step into the role of confirming zoning, we are actually stepping outside the scope of our license as we are not experts in that area.