Some folks look at commercial buildings as 5+ unit apartment buildings or a warehouse or something like that while some lenders and Dodd Frank legislation look at a simple, single family residential that's non-owner occupied as a commercial dwelling because it generates income. 

That likely is generally true however REITS offer instant liquidity meaning if I want out of a REIT investment I can liquidate it tomorrow.

In the instant situation I would be interested to see whether the title company's "approved" list of notaries happened to be staff on hand who make a few extra hundred $ for the title company.

Huge fan of building new - renters love the shiny pennies and as your aware you build instant equity. 

@James Freeman Since you need a 4 bedroom, I would recommend that you look into the possibility of building an ADU, Accessory Dwelling Unit, to help supplement your current income.

You can insulate floors, bathroom & bed room walls for noise but its not required.IRC - International building code for one and two family dwellings.

The premium for the policy goes based on the dwelling coverage of the structure.

A properly structured BRRRR property is designed to give you instant equity once the rehab is done, its also designed to cash flow much better than buying a home that needs no repairs and is rent ready.

Private flood generally requires you to match the Home Owners Coverage A  dwelling amount with the flood amount. 

Hey all we just closed on a property in Denton and I am looking into getting the process started on building out an additional dwelling unit.