Guy was getting a hard money loan for property and construction (don't know the details of the loan) only that the bid was accepted in FEB and the lender totally dragged his feet until it finally closed in August. 

I bet Maine is GORGEOUS!!

I was also thinking maybe find a home for cheap and restoring it for myself with a construction loan.

If Planning does determine the existence of your ground floor unit, it will require you to legalize the unit through the existing Planning code process assuming zoning supports the third unit OR using the new ADU program making your fast track condo conversion a passing dream.With regards, to some of your latter comments and questions:1) Any un-permitted work (including corrections) is not a good idea as a quick compliant from a neighbor can bring an inspector knocking on your door with a NOV especially in the current environment where everyone is SIP.2) Legalizing existing constructed spaces can be hit and miss based on the inspector you get.

One way to achieve more equity is to look at the neighboring markets and growthtriggers see if your area has similar economicsPass performance does not dictate the future Growth factors possibly hyper growth in your neighboring areas new construction amenities I have seen areas jump 10 X in relatively short periods due to multiple factors shopping, dining You owe to yourself to research the possibilities of future equity growth. you can always syndicate your ownership to long term investors to recoup some of your capital. ideal for people look for a write off and have the Ability to wait for appreciation.

I'm in the union on long island so I have a decent W2 job to help get started, I think a house hack would be my best bet starting out but, what do you guys think?

I believe new construction loans typically require a 20% down payment so you'll likely need more cash on hand than buying a primary residence.

Respectfully,Zach The best bet is likely to create a new LLC that lays things out in a straightforward but legally strong and standard operating agreement, etc. - LLC doc sets are fairly cheap and easy to create these days (with limited assistance from lawyers) and its much much better to have that cover bases on arrangements like this - it will also fit nicely with financing options - whether you take on debt from a lender in a co-equity situation like your first plan (refinance loan to LLC post rehab?)

Here are some highlights that are less well knownCurrent portfolio DSCRVertically integrated property / construction management?

High-quality finishes and construction can increase the ROI.