However, due to crazy high rates and housing inflation, I still live in this house.

Too many dangers if it is in a high crime area in the sense of vandalism, theft, etc. 

They want to send me to the commercial loan department where the rates are awful, closing costs are high, and the requirements much more robust.What if I just get a second-home construction to permanent loan, wait 12-16 months for it to be built, spend another 90-120 days furnishing it, and then refinance into a traditional 30 year fixed as an investment property?

this  make sense  if you were planning to  refnance  the  1st mtg anyways  ...otherwise  - I would either keep looking for another 95% heloc  or  make due with a  90% cltv  heloc programRight, it sounded like that’s the way in which Lower is able to offer that high percentage and offer this program.

I would prefer to self manage to avoid the high poperty management fees (I think its around 10% + 1 month leasing fee, etc.) and I also worry that the property manager will likely not be as dilligent in finding high quality affordable vendors, etc.I see 4 major pieces of work1) Tenant finding: I feel comfortable doing this remotely.

To combat this problem, a great management company who will have your back and navigate the ebb and flow of the ever changing climate of these rental sites is essential.Regardless of industry, when one or two of the providers consolidate power and foreclose all competition, this type of behavior inevitably follows. 

I want to get him to understand if our monthly payment is too high, we don't have the extra cash lying around to fix up the other unit and get it to market rents.

You also need an outlet/power and you need to hook up the drain properly.

Had a tenant sign the lease and send the move-in fee and 1st month's rent then start asking a bunch of super high-maintenance questions.

I'm highly interested in learning about Wholesaling, Rebuilding and Renting.