Private money lenders or construction loan specialists, on the other hand, are faster and more flexible, though their rates and terms will likely be less favorableFor a more rural area, local banks will almost certainly understand the market better, but connecting with private lenders who specialize in spec homes could provide more agility.

People focus on the rates because they are a singular number and easy to understand but you can lose money on a rental at a low interest rate and get rich paying a high interest rate.

Sandwich LO are even better.First and foremost, NEVER combine the two into one contract as the seller.This topic is a seminar unto its own, in order to fully explain what I wrote above, and to understand the why and how. 

From my understanding doesn't seem as though it would pass through, rather the fund would benefit and therefore returns would be better.

According to Tom Cruz hereafter referred to as DB, I wasted 31 years of my life training to become an ortho surgeon but the DB doesn't understand some people enjoy their jobs and are passionate about helping other people. 

Quote from @Zach Rothman: Sorry guys, I didn't really understand what this is about.

These can sometimes have more flexible terms than standard construction loans, especially if you can demonstrate strong income through your bank statements.

Just make sure you understand how to underwrite a property or partner with a Hard Money lender that can manage the process for you. 

I have learned a lot over the last ~6 months about furnishing a property, managing/pricing a rental, understanding the ins and outs of Airbnb/Furnished Finder, and analyzing real estate investments generally.My business idea is to use that knowledge and start a company that does the following:-Furnishes properties for investors who want to turn their LTR into a MTR/STR, new homebuyers who want to house hack, or just any investor needing a rental furnished.

Scenario 1 they don’t or refuse to move- eviction costs and/or lost rent Scenario 2 they move out and Cap ex and turnover costs, lost rent, advertising for new tenants in a somewhat of a qualified tenant shortage, headaches can be avoided by simply having a conversation with the tenant to see where their head is at, and that they understand what your expectations are.