This is my first purchase, where my intent was to install recessed lighting all throughout the house.

I will give you my numbers since we are 3 years into Velocity Banking.Home was purchased at $410k.Interest rate: 3.125%30 year termMortgage payment is around $1950 (includes insurance and property tax)HELOC: 8.25% Variable rate - current rateCredit Limit: $97kLet's say I made $10k a month and our expenses were $6k each month including the mortgage.

Purpose of the fund: To purchase old land, rezone, demolish, and rebuild homes to sell at a profit.

It's such an exciting part of the process!

That should be your focus, not how to purchase the land.  

Have you purchased a property yet? 

As long as you purchase at least as much as your net sale. 

I'm currently reading David Greene's book on BRRRR and was curious about how you all go about planning or visualizing added rooms to potential purchases. 

And even it's SF when you purchase it, again because it's not 100% MF including the county/city classification, you can use rental income from both units to help you qualify for future investments.Option #3 is something to use only when you're not willing or able to move into the property.

The second option was to do a Construction to Perm Loan inclusive of land purchase.