I am working with a small team, so can draw upon the experience of its members.

Jacob,Before you get a contractor on board, you will need and architect and engineers to prepared drawings for submission to DCRA for permits.

That does not make them investors any more than the guy working the counter at the dry cleaners he owns.For a real investor, there would never be a consideration to quit their 'day' job and work in their real estate.

All of the comps were considerably higher than my appraisal.

So all your ideas are great and we do take them in consideration.

After the refinance closed, the previous homeowner ended up re-drawing on the line of credit, and placing this mortgage in 1st position.

They will appoint a "consultant" to inspect for draws and keep your project on track.

Amount of cash down (if any) any additional consideration (like a car, vacant lot, etc.) and when they are to receive that, and the terms of the Purchase Money Note(s) for the difference, what the payments are, when they start and when they end.

There's a lot of great comments and suggestions here, and they should all be taken into consideration.

If you can tolerate Section 8, you may have hit the gold mine. 3 BR rates are considerably higher than 1 BR rates in most areas.