Not sure if this post is still active but I am a builder and developer in Houston.

We will require workman’s compensation, general liability, builders risk, and a performance bond from any company that wishes to bid.

The builders that we work with are building in areas of obvious population growth.  

Our Friends house w ADU worth approximately 1.8mil however the exceptional ADU was built by best builder in region for $300k and would cost $500k to build today.

It depends on the program, the two that I am most familiar with will do 100/100 at 70% ARV but will underwrite pretty heavily and will treat it almost along the lines of a non-QM lenders and might even underwrite the builder/GC.

So if anyone happens to know where that threshold is or where to look...like MD law, codes, statues, regulatory body, etc.

It will likely be more difficult to rent to a able-bodied tenants and much easier to rent to disabled tenants, possibly at a premium since it is (almost) ready to go.

If a new builder is suggesting its 1.7% in hutto then you should be cautious.

The builder warranty should cover you but make sure you read ALL the docs thoroughly; this is the biggest advantage of buying a new build, so use it A LOT.

There are many builders that provide investment opportunities to our network.