PROACTIVELY Structure the deal.HOLD the property, refi and take out cash repeatedly if you need it and current lending rules allow ( that option cycles about every 5 years!)

You do this so that it lowers your monthly payments and allows you to improve cash flow on the property.

Within 12 months, I improved my credit score, got approved for a VA loan, and bought my first duplex!

Keep in mind local rules apply.

But I've never been a big believer in following arbitrary rules. :) I can get away with it in my own house, on a flip or rental I wouldn't try it. 

You may not get landlording experience but you'll get maintenance, financing, and paperwork experience.I think the discussion points in your head and with them are around what kind of improvements they would need or desire (if you have to make it elderly accessible that could be a selling point for the next tenants, but what if they want something that will cause you more upkeep in the future?)

Not an insurance agent but i believe the difference is, the Vacant policy covers the existing structure plus improvements as they are done. the builders risk insures the material and i believe aspects of the project as it is built, since there is no structure. so if you happen to take a builders risk and you are doing reno, it may not cover you for the existing structure .

The market has improved considerably in Corpus and my house is now worth anywhere around $160,000 and up depending how updated it is.We want to sell the house and take the proceeds to invest in other real estate.  

Lending rules in Canada are very dynamic so you really need to ask someone who is an expert in this area.Good luck!

I guess the part my buyer has had difficulty with getting financing for the property is that there are no FHA qualified structures on the property, so even with the assessed value being $34k above the asking price, she is having trouble secureing a loan on a "Land" deal, even with improvements.