Far too risky and unlikely to succeed.It's unclear what the $2,500 monthly payment is based onAny one of the owner or mortgage or lien holders can force the foreclosure of the property.

If there is enough equity within the properties based on their appraised value, you may be able to do a packaged loan for these two properties and then have enough equity for a down payment on another property.

My engineer did briefly mention to me this was a risk but felt comfortable defending our position based on our compliance with AASHTO and we never discussed again.

The question will be whether the city make you add it or not based on the SOW when you pull a building permit.

Then the presenter (I believe it was Greg White CPA, on CCH), dropped this nugget, and I spent the next too many hours verifying it for myself. 

But like you said all based on the intent of living in it or primarily moving it to a rental.

While the process may seem transactional, it's important to note that lenders are motivated to close loans efficiently, as they are compensated based on successful outcomes.To gain insights into lenders' performance, consider checking reviews or seeking recommendations from credible sources like the BiggerPockets preferred lender page.Accountability in lending is indeed a two-way street.

For SFH appreciation is not really within your control - it’s market based.

A "bad" to one person can be an "ok" to another - so it's subjective and if you're basing your whole investment thesis off of one person's opinion you're not going to have a great time. 

The amount funded(usually based on loan to value or loan to cost-usually up to 75 post construction value or cost) covers for the entire project.