Learned that hired labor is the highest cost when rehabbing or fixing up to flip.

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Mod Building if done right cuts your carrying cost and your installation time making it more affordable. 

A lot of folks that build and rehab wont pay for it.. they take the position they did everything right and it benefits buyer if you want it you pay for it.its not a huge cost . 

Purchase price: $137,500 ($44,000 in to the property... loan at $101,000)Appraisal: $180,000   ARV: $195,000Est rehab cost: $7,500Scenario #1: 75% LTV cash out refi at 4.25%...

You aren't necessarily building that much equity (cost of building exceeds the value) but it is a third option that is a hybrid.Another factor is location.

Cost overruns were tremendous.

But the cost of maintaining and filing an entity correctly is much higher and also needs to be considered. 

This approach is cost-efficient and eliminates the complexities of dual-state filings.

Meaning, if you take the money only, you would have depreciation recapture from your cost basis up to the original purchase price of the building (not including the land cost because it wasn't depreciable), plus a capital gain up to the insurance proceeds.Hope this makes sense.