During this renovation period would you, as the lender, want an Actual Cash Value or Replacement Cost policy in place?

There are several myths that we have to debunk before someone truly believes they can do it.You need millions of dollars to do a dealThat it’s too complicated to figure outThat permitting takes yearsIn those communities developments cost way less (think a couple hundred thousand along with a loan from a regional bank), permitting is not difficult (much less red tape), and the towns are small enough that both the city staff and the local architects and engineers and contractors all work with you to help you navigate the process since you’re all invested in making your community better.Note: The big boys can play in the primary & secondary markets.

What is the average acquisition cost of the houses?

Lets say its $270k and you are financing $220k and it takes a year at 12% thats $26k in interest plus other costs etc.

If each property costs $200,000 and your only acquisition cost is a 25% down payment, you will need $850,000 (17 × $200,000 × 25%) in savings, an almost impossible amount for most people.

There would be a lease agreement, just no monthly rent payments.

And although I'm grateful to have found another lender to get it done, it cost me more money in points, a higher interest rate because of the current rate was higher than previous, and I had to buy another appraisal for $750.The response I received from one of the founders of the company states: "We are not able to refund any amounts at this time as the time of quality control has passed....

@Kerry Baird Love hearing about others taking advantage of cost segregation studies.

You didn't mention the higher Florida insurance costs. 

Sure don't do the renovation, I only do renovations that project a return of 2x the cost of the renovation.