I was looking to payoff the underlying loan of $156K, and add construction hold-back of $250K. 

Alternative income options are available but will reduce the maximum loan to value. 

To focus their Financial & Estate Planning4.

Do the math with a small number of units you like best and purchase whichever one makes sense financially based on price/income.

Rents are at market level now and I paid off the loan from the proceeds of another house I sold. 

Why not just get a loan from your 'partner' if you are unable to front the whole down payment.

I am seeing a lot of incentives from builders Ahh the dreaded question for a loan officer!

@Dock Newell Jr recommend you focus a bit higher than asking which neighborhoods to invest in.Suggest you take some time to understand how the local neighborhoods are ranked by Property Class/tenants and what to expect from them.See below for how we do this in Detroit and use as template (this is a copy & paste):Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

Otherwise a typical DSCR loan based on market long term rents should be sufficient to qualify? 

Also, once on title, what are my construction loan options?