For tax purposes, you probably want the property to be treated as a "for profit" rental if possible, because the other alternative is that it's a "hobby", and you can't write off any losses.One of the tests is that the rent has to be "reasonable" - it can be somewhat below market, but it can't be pennies on the dollar low.

Standard Construction Financing rolling over to 15 year fixed How did you add value to the deal?

Getting a single large client can be great - but that person will quickly realize that they have you by the proverbial short hairs and can really jerk you around if they want to.Also, if you grow quickly and suddenly need to add people, getting paid after work is done can really create a cash crunch if you need to meet a weekly pay roll, or if you're suddenly consuming 500% more gas, consumables, materials, etc...

I can think of some ways to calculate how much of their electric the furnace has used based on the gas bill and some electrical testing, but nothing that quick or precise. 

-Building permit can be acquired for only permit fees, structural engineering, soils testing and surveying fees.

basically I want the money available to roll as I start paying towards the principal. 

What I need is a lender to provide construction loan for the construction of the duplex, and then upon completion of the duplex, to roll it into a mortgage. 

So using the .70 test, even at a 520K sale price the rehab would only need to be 84K.

I'm looking to buy a lot and wondering how long soil testing takes for new builders in Durham, NC.

I just started getting my financing together and can't wait to get the ball rolling!