Quote from @Travis Timmons: We live in Texas and do a medium term, furnished rental in Oregon.

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.

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

Hi Raymond, You are correct in your assumptions.

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

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).

Must meet self sufficiency test for 3-4 units on FHA though, which alot of properties in higher cost areas do not meet.Conventional allows 5% down on 2-4 units.

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

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

Hey Drew, this home won't rent for $3,165 per month as stated in a previous response.