Once the reno is started, you need to switch to a Renovation Builders Risk policy to insure the building and the improvements you are putting in. 

If your not in a position to buy a single family, renovate it, live in it for a year or more then buy another on (house hack), A good option may be buy a single family that needs a little work/cosmetic improvements, rent it, and refinance it BRRR method.The first option allows you to get a better interest rate.

I've done a lot of cosmetic improvements to the property in the last year, so I think the increase is more than justified! 

So we found a repossessed triplex for 380k with about 70 in upgrades to improve the property (450k total).Our current property is appraised at $730k with a balance of 248k and can pull out about 300-320k out with a refi. 

It doesn't seem often, but these people are not the kind you want angry at you, so anything I can do to improve the situation would be good. 

Otherwise, don't mention down payment--if they hold the note, you'll be improving the property with your rehab.Hope you get the drift. 

If you plan to live there for an extended period of time and it would lower your current cost of living that would be an improvement, but this would be a negative cashflow investment and I'd personally pass.

Raising rents, remodeling units as they become vacant, improving common and exterior areas, better maintenance and management than prior ownership provided.

While improving that take on another 2-4 unit you can BRRRR.

Terms are better if you're improving a building for energy efficiency as more lenders want your business.