As is was mentioned above Fannie/Freddie require 12 months before you can use the new value to walk away with cash.

I require tenants to replace consumables like refrigerator filters or HVAC filters.

Here's what I know based on general Fannie Mae guidelines and the specifics of your situation:PMI on HomeStyle Loans: Typically, PMI (Private Mortgage Insurance) is required on loans where the LTV is above 80%.

Hey Quentin, Here are my bits of advice:Prioritize Value-Add Opportunities: Focus on properties that require cosmetic updates rather than extensive structural repairs.

And if you want SBA financing, they're going to require this anyway.

It comes with risks and requires diligent research. 

A new build should require much lower maintenance expense vs a 100 year old home.Hope this helps.

I’ve had experience with both traditional and private construction loans, and here’s my take:Traditional Lenders: The process can be slower with more paperwork and stringent requirements, but they usually offer lower interest rates.

It's easy to obtain, costs very little, and doesn't require extra, on-going effort to maintain.

*The big asterisk on this entire statement. be aware many States have bedbug laws on the books now requiring the LL inspect and treat if there is an issue.