IF your lender is knowledgeable, this is what they will be asking for.I'd suggest getting this priced out on the front end as the premium will be a little more expensive than a traditional landlord policy.  

Instead of the one time sell that most builders get, this time, the developer/fund will collect a massive downpayment (much like buying a home in golf community, you pay the downpayment to the bank and a premium/deposit for the community).

But a home in this condition, this size, in this location is only worth around $450k-$475k to me at best.You may find an end user who wants to move their family into this place and is willing to pay a premium, but it is unlikely you will find an investor willing to pay your break-even price.

They offer higher cashflow returns in exchange for you paying a premium for the deal.There is money to be made in this market.

Think of it is as an insurance premium on your project that actually pays off if you assemble the right team.7.

A few additional things that should be considered:- Mortgage insurance premium added to the loan on an FHA (upfront and monthly)- Cost to resell the property in year 2 (roughly 8.5%)

This does mean I have to be willing to pay a premium price but if the numbers work, they work!

Expect to pay premium for a property in MoCo.  

The result is a very low foreclosure premium from what I experienced years ago.

From my experience as a renter and chatting with house hackers, the room-rental market places a premium on public transportation access.