I found the code and zoning department for my community and am in email correspondence with them. 

@Mark Alford I see a few lending institutions that I’ve worked with in the past that are offering this.

I do think the ideal first-time rental is a four unit that you can live in and rent the other three units out, but those can be harder to find.

Hi Raymond, You are correct in your assumptions.

Quote from @Clint Miller: Anyone here in the community used construction loans to scale their development projects?

In 2017 we started our journey with long-term buy-and-hold investment properties in the Memphis, TN area after selling a property that we were losing money on every month in NOVA that we purchased as a primary residence in Jan 2007 (talk about all-time bad timing) and then had to move with the Navy in 2009 (2nd all-time worst timing).

What made you interested in investing in this type of deal?

My current home is in a rural area in Indiana, has 4 bedrooms, 2 full baths, and is about 2200 sq ft.

They explained that Fannie Mae (according to an exchange with their Servicing Portfolio Manager at Fannie Mae for a similar but not an exact loan) does not allow PMI removal for improvements already included in the original loan’s scope until after a two-year seasoning period

I have found several homes that I thought were deals in Memphis and after checking them out with local experts have decided not to buy.When in doubt - go to those that specialize.