Sometimes it's unavoidable, but you can definitely minimize it by being really comfortable with your original plan, and where you will cut the fat when (not if) you need to.Then, the construction loan is only very short term so you need to make sure you have solid contractor who can get things done on a timeline.

The specific area that this property is in is one block from the downtown area where it's up and coming (i.e vacant lots undergoing ground up construction for 'luxury' condominiums).

The new condos/lofts for sale in the area range from $180k-$400k) Is there a chance that rents will actually rise as appreciation could begin to happen as the area undergoes further gentrification?

Mount vernon ny interesting city and that's where im starting , my home town. one of the cities that lie on the boarder of NYC (the 5 boroughs ) that will undergo (and is undergoing) gentrification because the vein of public trans to nyc runs through it. just a little background on me. ive dropped out of college 3 times , im currently chasing my B.S in Mechanical Engineering. ive acquired a decent job after years of retail.  

I assume at this point the husband did not fill out an application and under go the screening process?

It's very historic--one of the oldest in the city--and is undergoing renovation in parts (but not all).

It's been tough trying to find a 12%pa cash-flow property here lately and this a higher return than that.Phoenix has become a little tougher to find a deal with a lot of fat on it, not impossible, but tougher than when I started.

BUT, I also learned that this section of the city will be undergoing "urban renewal"- so I should receive money for the paint, roof, etc...

I think that is a red flag that a turnkey provider is making a fat profit.

I have 30 SFR undergoing renovation and 60 SFR fully rehabbed, tenanted, and for sale.