Best bet is VA loan f you have that, fha or 5 percent conventional.You’ll need the downpayment plus 4-5k in closing costs depending on taxes and insurance

For one agreed upon price, the builder will buy the land, prepare the land, build the house, insure the project themselves, and then once finished, turn the house over to me once I've paid off the balance.The question for anyone out there with some experience doing this in MN, which builders offer the best value and are the most reliable?

Do I need to change my insurance policy?

@Jestin Sorenson Make sure to review all the rents and deferred maintenance costs, all the utilities, insurance...everything-if you plan to take a portion of equity-all the numbers need to be evaluated.

Is it worth to claim to insurance co to replace the new roof then we get the record claim and the rest of our insurances will go up next year or patch them will be enough ?.

If you are conservative want to count on the income as pension you can cash out the balance and expect several K income with tax and insurance obligation.

Well You must notify your insurer that it is for students .

The sellers offered to submit an insurance claim for the stolen ac units and take that $ to cover the difference between our new price & her mortgage payoff.  

The rent rates are cautiously 1200/monthThe tenant will pay utilities and rental insurance I'm estimating is 100 a month.The taxes are 2k/yearly.I will be managing this property myself.Thank you!

Try to get a $10K-$20K  down and then see if you can get an interest rate a few points higher than the Subject-To loan interest rate.I agree with Mitch also, Sub-To's have nuances so get some help if you've not done them before, particularly around how to deal with the underlying mortgage provider as  well as insuring the property.