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

Now that the six-month seasoning period has ended, I’m considering refinancing the property.

Quote from @Cecil Shannon: Quote from @Bonnie Low: Hi, Cecil - we're in Shasta County, too, and have properties in Redding and Shasta Lake.

The biggest pro of using FHA and conventional financing is you can easily use them to house hack for 3-5% down payment which is an extremely low down payment. 

@Moshe H.No, not all the time, but the low contributors do not wish to lose it. 

I would encourage house hacking, you won't be cash flowing but it helps you save while you get your foot in the door with low DP.

Rents are low and prices are high.

But if your goal is to cashflow positive from the Day 1, you may find it very challenging due to current day interest rates, high cost of construction and the fact you won't have the efficiencies of a seasoned developer building at scale.

Seems really low for all that work in any part of the country these days IMO. 

, during fire season?