On the flip side, having more choice in location with an existing product could be advantageous to both his personal life and the earnings potential; add in the second unit having the potential of being a STR/MTR and location becomes even more important.The contract/permit side CAN be challenging location by location; assuming he's working with someone who knows what they're doing, Raleigh makes it easier to get permits for these larger "small scale" projects than Durham.

Alternatively community bank loans could be a great option for a first time home buyer.   

So I definitely think understanding the big picture and how your situation aligns with your personal goals should be taken into consideration.

Assuming this is an investment property, keeping track of your expenses and income in a separate bank account (not personal) and ideally holding the property in an LLC 

Regardless of the bonus depreciation phase out, it continues to be a favorable strategy that creates significant tax savings.ReclassificationDuring a cost segregation study, the real property is reclassified into new categories of personal property based on its useful life.

To do that, they would gross up the offer price to include their closing fees like prepaid taxes, bank fees, title fees, etc.

I'm also having fits with traditional banks because the loan would be considered commercial.

I have 30 K in the bank and I can’t decide if I should buy a rental or a flip.

We've confirmed with the builder that they'll sell to investors if they go through my realtor, since they have a personal relationship. 

Few know this, but you can still negotiate with the bank in bankruptcy and some people end up keeping their property.