Hard Money loans have been the downfall of many new investors. 

For smaller investment amounts, we often see investors providing private loans or notes to other investors for their projects, which can offer attractive returns with the right due diligence.

Option 3- If they have qualified for FHA; counter the offer to see if they can qualify for low downpayment conventional loan

Having your son involved in the loan, title, and insurance policy does have both benefits and drawbacks.

Ensure they're providing you with daily or weekly EOD reports with the campaign stats.

A minimum of $1M in coverage provides added protection in case of major liability claims, though $2M–$5M offers even greater security depending on your situation.

Lenders assume more risk with a higher loan-to-value, so to compensate they'll charge more in points, loan level price adjustments, etc. 

When I am looking for a new investment property and am strapped for cash, I typically look off-market and try and find something that can a seller is looking to sell that needs minimal repairs to be rent ready and the purchase price is 80% of the ARV this way I can use private money to buy in cash, do the repairs needed then refinance on a DSCR loan and pay off the private money loan. 

Yes Joel, That would be a business purpose DSCR loan.

We currently have a construction loan on the properties and we would like to refi to a more conventional loan.