The two existing LTR units (on my family’s property) were built 5–8 years ago at a cost of about $80,000 per unit, so I’m estimating a 20% increase in costs for the new builds.My plan is to use the equity in the land as the down payment for the construction loan, which I expect will make closing costs the primary upfront expense.

Contractor burnout is another concern.Owners like to think it's so easy to just pick up the phone or send a mass email to get contractors beating down their door to give them a bid and hopefully get the job.Doesn't work that way!

@Charlie Hardage, how is paying down the HELOC better than paying down the initial mortgage without the HELOC?

10% down 2nd home loan and savings from the proceeds of already owned STR's.

I sent a friend down there to look at various listings.

I then recoup any losses in the resale and down payment forfeiture.

Let me know if you ever need help with anything down here! 

Consider using an FHA loan to secure a 1–4 unit property with just 3.5% down and take advantage of tax benefits by living there for at least two years.

Do they have 20-25% down to ask for seller financing?

However, as I walk down the street in my city, I see tons of retail businesses that definitely do not comply.