So all in all, the investment seems solid to me, and this is not my first rodeo, as they say.As for the risks associated with the SBLOC, I minimize those by only utilizing a portion of the LOC so that even if the market drops another, lets say 30%, the risk of margin call is slim.

I’m looking to connect with experienced spec builders who have utilized hard money lenders, private money, or even grants to fund their projects.

@Alecia Loveless is correct--tenants need access 24/7 to their electric service panel, water and heat, assuming those are individual utilities for each unit. 

Utilizing my relationship with a great local lender I started the process of getting a secured line of credit set up against the 3 unit so I could pull most of my money back out.

I can only speak regarding structuring the deal as I have not utilized partners personally but it really can be anything that you want.

I’ve heard that this neighborhood doesn’t really have any problems from a social worker but outside areas aren’t good. 3/4 units are currently rented at $900 each, renters pay utilities.

Out of that voucher amount, they will have a utility and appliance work sheet that provides a cost for each utility or appliance not provided by a landlord for each bedroom size.

That's three months of mortgage and utilities, the cost of flooring, and the cost of painting.

Or is it better to utilize different strategies?

If you’re looking at retrofitting to separate heating for each unit (like furnaces or mini-splits), you might be looking at a higher upfront cost, but it can shift utility expenses to tenants and improve your NOI.I’d factor in boiler age and efficiency when analyzing deals and if it’s near the end of its life, negotiate a price reduction or a credit.