I have found working with these investors that if they focus on New Construction Investing they are able to not only keep their costs down but the properties appreciate better because the comps are new. 

Some of the best ones are offering rates as low as 5.75% at no cost to you, it just requires a 30% down payment.

Our rehab cost estimation comes from researching the area and talking with local investors that have similar properties. 

Quote from @Stepan Hedz: Selling fees (estimate), $30,000, and holding costs?

That mean the upfront costs could be up to the low 6 figures. 

You should also request a personal financial statement to better understand their financial health and proof of funds to confirm they have the liquidity for down payments and closing costs.

Generally these will have a shorter maturity and higher costs. 

That is what 1% of the $40,000 down payment costs were from when we refinanced it and started this process in Jan 2022.

We are considering building and holding townhomes but need to determine the costs.  

These products allow you to purchase a home that may need some work and roll the renovation costs into your mortgage.