Typically new builds can still be negotiated/remedied through inspections while in contract (Seller credits, work that needs to be done properly).

I'm wondering how I could utilize a private money lender for the down payment and how this could work if this was a long term buy and hold or even a BRRRR.

Hi Michael, If you are looking at a bridge for a fix and flip (either to BRRRR or to flip), typically HML will want to see purchase price, your track record, your credit score, your reserves, your SOW and an idea of your exit plan and ARV. 

I don’t really have a problem with it as I don’t pay the utilities, I just want to make sure it doesn’t open me up to a lawsuit of any kind.  

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

3) what’s the smallest increase you would do the work of finding a new place, go look at it, pack up your entire house, take a day or two off work to move everything, transfer all the utilities and mailing addresses< etc etc etc?

Please keep in mind that I plan to rent to college students and the free unit is about 2,000 sqft:- I went to transfer utilities and the past owners have a balance.

Specifically, I'm interested in understanding the discount buyers are typically looking for.

I use a hard money lender, where they typically require 10-15% down payment on purchase of an investment property, and they fund the rehab.

FHA 203K loans will typically require a 203K consultant to overview the project as well. your lender should be able to assist with this.