I would also consider other exits in case the house doesn't sell and run your numbers with a worst case scenario and you're holding the loan for 9-12+ months.

If I were in your shoes, I would be conservative as possible and go for the worst case scenario.

Sucks how insurance works, but usually better for worst case scenarios. 

The selling agent and home inspector tells me it's common and he sees it in 50% home he inspect(central Florida).Questions I have are,1. 

Hi @RaeAnne Conat, there are specific lending options that cater to this type of scenario.

A GOOD agent (or a good consultant/mentor I suppose but much less common) is the MVP of the team.

Pay it off with a commercial DSCR refinance loan once you've gotten the rents up to an amount that will allow you to cash out on your HELOC.I like using my HELOC but only in short-term scenarios because it's a floating rate and I can't control when or how the bank will make adjustments to the payback variables. 

The only VA construction loans they do are full / new construction or the energy efficient renovation loans (which I think are more common, but are limited to only energy efficiency improvements).  

Hello BP community,I'm interested to learn what most investors do with the portion of rental income commonly set aside for cap ex, repair, and vacancy costs.

You may need to have survey performed on the property that might be paid for by you or by the seller or it may be common practice in the area for particular pardon you to pay for it.