@Brandon BellIf you have a loan officer you are planning on working with, it might be best to consult them first on the best route to go for this scenario.

However, if you plan to do a furnished rental, then I think month-to-month may be more common.

I want to thank Rent To Retirement & Zach, who got me a free consultation for.The costs to do this do reduce cash flow as well as the administrative time to file the different returns/reports are real, but it is worth it to reduce liability for the long term. 

I have built around  20 homes in the past 2 years all with the exact home plan and  I been doing spec and custom homes my entire life.

Always have a plan-or more than one.

He has experience setting up syndications, but past that if you're planning to make moves in California getting started with him or anyone at Cox Castle plugs you into one of the hardest hitting real estate law firms in California with highly experienced lawyers in construction issues, contracts, financing, work outs, land use, multifamily/commercial purchase and sale etc. 

@Ravi KaruturiRavi, a Project with a $10M “all in” cost will typically support a 70%-80% loan to cost (LTC).This means that you can borrow $7M-$8M which means that you will have to invest an equity infusion of $3M-$2M.More fundamentally, if you are asking a question like this, your priorities need adjusting.Raising capital from whomever, and especially from friends and family must come after you have acquired and can demonstrate the skills necessary to build a $10M ground up development.I believe that if you pursue a plan to raise the equity required that you will find it very difficult to secure bank debt without a track record and or the skills noted above.Feel free to reach out to me if you want to talk.

You got to get a little vulnerable on here...What is the plan? 

I'm also in need of a CPA/tax advisor to advise on what's the best structure from a liability protection and tax planning standpoint.Thanks for your input.

The plans that are coming out are promising.