As a newbie, you should educate yourself sufficiently to minimize the possibility of such happening.

This assumes your credit is sufficient to make sure you can utilize conventional financing effectively otherwise FHA for the primary home will allow the most leverage at 96.5% loan however FHA adds 1.75% of your loan that gets financed into your loan and an additional 1.35% annual mortgage insurance.

What might be insured is between the insurance carrier and the lender.Considerations are vast, the local economy, the project, management, financials, timing of the project to completion, basically all areas that a lender will consider.As to sub-prime, never heard of it, as coverage is generally afforded to strong borrowers, developers that are entering a project at a higher LTV initially and the LTV is reduced as a project comes to completion, the initial risk.Apartments or properties held long term can be insured but again usually to cover the LTV risk, that is risk enough and to add sub-prime credit, management, or low debt coverage issues really isn't an insurable risk.

In most situations, that will be sufficient to protect you.

Thank you for the vast amount of information.

So called off-market properties found to have a MLS or just as bad have been vastly marketed online so much so that its just the same as having an MLS.

A 25 year old furnace is sufficient until it quits (usually on christmas eve:))

Take advantage of the vast resources I've found here on Bigger Pockets--articles, tools, and connections with others.2.

IMO, LMOs are not be getting sufficient training, reminds me of the old commercial where a financial planner pushes the same IRA across his desk to any client saying "this plan is especially tailored to your needs".

Do you know if taking a detailed walk through video would be sufficient for a contractor to do a rough estimate?