In the future, we are probably going to look for cheaper alternatives for flooring and cabinets.

But even the hint of an alternate use in the units (hair salon downstairs) suddenly classifies this as more expensive 'commercial' loan. 

@Kevin Dougherty  I am trying to find an alternative to SFRs.

I think the duplexes would be better in terms of phasing the construction with the bank, and I know in my city anything over 4 units needs to meet all the efficiency and environmental guide lines, which drives the cost of materials.

I had too keep our team on track as well as keep up with other trades, keep my company up to date on everything from timelines too materials too meetings etc.

For your first project, use a General Contractor, who has their own subs and who will deal with all that minutia for you, then follow them around, ask lots of questions and learn.Whatever you do, have a rock-solid contract that specifies money for performance and have them deal with materials and the haul-away and bid the job including both labor and materials broken out. 

Alternatively, i have looked in the midwest states and it seems there are many properties that have positive cash flow potential.

Then you have labor, fire-rated misc. materials, etc. 

Evidence would be a lease in the tenant's name, a current utility bill in their name at another address, and/or a copy of a current bank statement with their alternative address on it. 

A portion of the funds can be disbursed prior to the start of the rehab for things like materials and other upfront costs, but this is usually just a small amount relative to the total rehab cost.