You just can't beat the financing available, the rate is good but the LTV (96.5% on FHA loans) is unbeatable.

A few thoughts- do you have any equity in the car with the $20K loan? 

There is a 30 year conventional loan product that only requires 5% down, which is great to use with this strategy.Are you focusing on investing in Bangor specifically?

House hacking means you can use low-down-payment loans (FHA/VA/Conventional) to keep more cash on hand.Network with Investor-Friendly Agents – A good agent who understands house hacking & multi-family investing is a game-changer.

Check your insurance, I’ve seen a lot of people specialize in renting to group homes or care facilities so there must be a commercial policy for this.

Purchase price: $137,500 ($44,000 in to the property... loan at $101,000)Appraisal: $180,000   ARV: $195,000Est rehab cost: $7,500Scenario #1: 75% LTV cash out refi at 4.25%...

An additional benefit of a detailed engineering-based Cost Segregation Study is that it can increase potential insurance premium savings as well as provide support for the property tax appeals process.

and then getting a standard mortgage after that vs. getting a construction loan to pay during the build and then convert. 

I see too many investors now, put a significant amount of money in rehab costs and over leverage themselves on hard money loans with low down payments, their properties are not selling and they are lucky to just payoff their current hard money loan via a DSCR refinance. 

Regarding insurance adding additional umbrella insurance is great idea.