If this deal is debt constrained, a 25 yr am will change your loan proceeds (your down payment will need to be more to meet the DSCR) considerably.

So even though I have business and property insurance, I still keep a 5 mil personal umbrella.....

Have you confirmed insurance and taxes with an agent and the town?

John keep in mind that is insurance companies paying for the new builds.. free market is not that high

BTW, I think the whole “must own in an llc” is a bit overblown anyway...keep good insurance, maintain your properties.

At 12mo+ that lease income will add to your income to help (not hurt) your DTI.in time you can REFI out the FHA once equity has built ideally with some cash out REFI, but the REFI will be conventional investment at 80% LTV.Its said that a 95% conventional is really a better product for those who qualify then FHA, which today the Mortgage insurance never drops off, where in conventional it will drop off when at 80% LTV.

Since her home was flooded due to an interal plumbing issue and the insurance company is paying to remodel the existing old (1920s) and dilapidated structure (could tell by looking at some of the 2x4 studs revealed in the partial internal demolition), I decided to find out if my mother can use the money should would receive from the insurance company in the form of a check, put that towards the remodel, and in addition secure a construction-to-permanent loan in order to fund the complete transformation of her 1 bed 1 bath 1,200 sqft home into a 2-story duplex that she can rent out, airbnb, etc.

A Payment Schedule should outline Payment Milestones, Amounts & Terms which describe the work that needs to be completed in order for the Contractor to get paid, how much the Contractor gets paid, and when the Contractor gets paid.Form W-9You will need to get a W-9 from the Contractor so you have the Contractor's Name, Address & Taxpayer Identification number which will be used for preparing Vendor 1099s for your Contractors at tax time.Proof of InsuranceBefore hiring a Contractor you need to make sure that the Contractor is carrying the proper insurance to protect your property, investments & personal assets.

I'm not sure if this would help but I am the owner of her officialDeath Certificate and in the (Informants Name) box my name is on it, I was the one who paid for her cremation and did all the legal papers after she died and I was the one who she left her Life Insurance Policy to as well as I am her 401K Beneficiary...

Loss of insurance on the house for non payment.