The low rise type buildings without elevators tend to have the more relax rules and also the lower assesments, so they can be a good option.

I am a fan, don't get me wrong. the smaller your mortgage, the less likely you are to refi because rates got lower.

You have an owner occupied loan in the mid 6s today (hopefully lower later).

Harris is not the first person since it already exists.Affordable housing was first targeted under the Clinton/Gore Admin lowering it to an all time low and its at the worse its ever been with unaffordable housing under the Biden/Harris Admin.  

I've considered this, but would prefer to invest in a market with more landlord-friendly laws & a lower barrier to entry.

You may also want to look at a cash out refinance to eliminate one or more Heloc or a few credit cards to lower your DTI and outgoing monthly debts.A heloc is a risk since its an open end mortgage like a credit card which carries a higher risk versus a 30 year mortgage. 

On top of that, the tenants are lower-quality, so it takes more work to maintain communication, enforce the lease, etc.In my experience, the additional work and eventual losses erase any benefits of Section 8.

I am looking for advice how to finance the home construction costs before obtaining a lower interest mortgage after construction is completed.  

With a house on the lower end like that every few thousand adds up and takes away from your returns on the rental income.

if I am holding onto this property for a long time, will 1 year of lower income make a large difference?"