I'm not the underwriter who approves the loan, I just know what they need which is usually a thorough overview and proof of recently completed projects, where you were the GC. 

How much cash flow negative are you projecting?

Part of the investment thesis was getting it for a bargain, then building an ADU complex on it as affordably as possible, getting it to cash flow, and realizing value on both the rental income but also property appreciation given the work going into it.If the property will really only be worth ~$1.70M once we are finished, I will likely just stop the project now and exit the house as soon as possible.If you do not get dollar for dollar for projects such as this, how would house flipping ever work?

Use AirDNA to get a better feel for what may be projected and then dive into Airbnb and compare to your competitors. 

And while I agree that debt is often the cheapest form of capital, if you are looking at a project that involves some form of value-add business plan, you can always refi either when rates come down or you have increased the yield on the asset to exceed your interest rate.But like Stuart noted, for many groups, even the most seasoned syndicators, raising call cash for their deals is effectively impossible.  

And the cracks mostly follow the drywall seams from what I can see, which is typical....And as @Patricia Steiner said, it doesn't look like a pro installation....You could ask the Contr to use a flexible compound if this happens again, or maybe even now...https://www.dap.com/products-projects/product-categories/pat...Like everyone else said, I'd have it repaired - by a licensed Drywall Contr. - and then just check in on it.

Welcome to BP, I’m an agent here in the Phoenix/Scottsdale area and I work with a lot of investors on fix-and-flip projects, rental properties, and off-market deals.

Can you DIY projects and cost cuts? 

I'm looking to purchase my first rental property and have been searching for a deal that would generate positive cash flow based on my projections.

We're not aware of anyone that's made a purchase from them work in over 3 years:(Most of the incentives in Detroit are targeted to owners that will live in their home or developers targeting large projects.