But, I always try to get my borrowers to qualify for conventional because the terms are better then on a bank statement loan.   

Now, I help the same type of clients get financing (both construction and long term) for their projects.

I would suggest you also research the zoning code so there is an additional upside long term.   

Just like the asking price, just because the owner suggests one interest rate or term doesn't mean you can't offer something different. 

Think of it as s long term investment that will save you headaches down the road. 

I look forward to hearing more on your success. 

Gross Margin is an important calculation for developers/builders.Gross Margin = Gross Profit / RevenueWe shoot for a 20% gross margin on our New Construction HomesReal #’s:Home Sales Price: $374KClosing Cost: $18,700Cost of Construction: $258KLand Cost: $30KGross Profit = $67K$67K/$374K = 17.9% Gross MarginCame slightly short of our goal of 20%Homes Values and Build Costs are constantly fluctuatingI wish we had a crystal ball

She's a beast and you'll likely get approved which will give you a revolving source of funds to keep growing Griffin what terms are you seeing on products like this? 

Income would cover rent for a short time.

I'd underwrite the property, with that low interest rate assumable mortgage, to cash flow positively from day 1 as a long-term rental, but be willing and able to use the rent by the room strategy or to rent out part of the property as a Short Term Rental to dramatically increase cash flow during my occupancy.