Can't you get your builder's risk policy from the same agent you currently carry your general liability (for your GC business) with? 

I do carry STR insurance myself that allows arbitrage and it costs several times as much as landlord insurance.

Aside from the responses above regarding the bank likely requiring the 20% funds to be yours, good luck finding any private lender willing to take a second position note on a 100% LTV for any %, let alone a tiny 3%.Now, banks do, at times, allow seller carried back seconds, but unlikely with no skin in the game from the borrower.

CalPERS was considered the gold standard of pension programs but it's a shell of its former self due to mismangement and unfunded liabilities.

I then took that money, paid off most of my debt, and then started looking for a place where the owner would carry the note and I could afford the down payment.The only thing I could find that met those requirements was a 100-year-old house that had been converted some decades ago into three, one-bedroom apartments.

market is too small and its all cash and carry basically. 

That's if the rental income can carry the cost of the new mortgage.

I chose to carry contracts/ the paper and exit.  1031 if you want to stay in, but have your replacecement property in mind to avoid becoming a motivated buyer.  

I lived in Toronto for a couple of years, and the real estate there is quite funky.Making the trip and meeting people in person will be worth its weight in gold...GREAT CALL on that.We work solely in Chicago as a general contractor...for now. 

It was my father's investment it actually at one point had been our primary residence he was just putting it on the market because he didn't want to deal with the stress of renters or have to worry about carrying costs.