As you speak to potential renters, you can let them know they can also rent it furnished for a higher rate.

A newbie to real estate I met at a foreclosure auction asked me about real estate meetups in my area that are no cost.

With insurance costs going up, construction, etc., 5% might actually be high in your estimation. 

Rents will need to increase to keep up with the increase in property tax, insurance, maintenance cost etc.

The original price still seems steep especially for potential tenants who may not even sign a lease. 

I normally feel like it'd be a no brainer to get a HELOC and use it to invest, but with rates and housing costs, I wasn't sure if it'd be worth to use on the primary.Appreciate any response, just wanted some insight on what other's though.Kindest Regards.

I love the value add in general because it helps your wealth-building potential and equity position. 

Is it fraud , no they are telling you the cost up front , you accept or decline . 

The costs of land  , engineering , site work , permits , labor , and building materials make this virtually impossible . then there are zoning issues and the rest of the politics that go along with this . 

@Hanna Minkinit sounds like you're potentially considering buying a rental with 100% financed funds.