You could also combine a down payment with the remaining entitlement for a larger loan amount.

HML just went to private money to give the allusion that you are going to find some rich doctor that is going to lend you money at 5%. private money  hard money is quite competitive these days.. you can plan on 2 to 4 points up front at close and 10 to 15% interest  plus junk fees and rehab draw fees appraisal fees etc etc. some of the larger national lenders have their pricing very well spelled out on their websites you may want to get a baseline from themKiaviLima one Lending oneetc etc..

If you’re curious about why I’m asking, here’s some background:Background:During a recent stay, we had two guests with their dogs in our Airbnb rental.

Typically I try to stick to 2-4 bedroom single families as larger homes do not bring much more in rent but more in repairs.

For example one big row of 15 units isn't optimal but if I want to break them up I would have to have 20' between blocks, which would kill yield.Instead of waiting for them to modernize their multi-family regs (at least a year out, maybe two) or sucking it up and living with the costs as things stand, I could instead do 5 "triplexes" of single-family + 2 ADUs and bypass some restrictions (only 5' setbacks between blocks, 1 parking space per ADU unit instead of 1.75, etc.).But I'm concerned that Seattle builders may quickly move away from this strategy as HB1110 will (in Seattle and many other larger cities/counties, but not mine) soon enable sixplex townhouses in pretty much all the areas where the condo-ized ADU strategy has been mushrooming. 

Our investors invested in the number one market in the country:https://www.apartments.com/grow/learning-center/best-rent-gr...Louisville is listed because the MSA is larger but know that Lexington is following the same growth trends.

That or pay a 6 cap for a 60 year old building with Billy Bob Hot Dogs as a tenant.

Tenants dog eats all window sills and moldings3.

One more step toward the day when it's just me, my wife, and the dog on 200 acres. 

The steps, licensing, regulations and everything are much much higher on option 1, however obviously would add a larger target market