If so that increases your cash flow significantly.

I then got a call from the mortgage company in the afternoon telling me that mortgage rates were skyrocketing and my new rate with 0 points would be 6.5% and I need to lock or it could increase even more. 

The estimated budget for the rehab is as follows:The rent increase will be $200 on the unit, going from $725 to $925 or a 27.5% increase.

If you don't property manage yourself, you might need to increase the strictness of your tenant screening.That is what I have in mind.

Mls fees, board association, e&o insurance, general business liability insurance, electronic key fees, licensing fees, continuing education, any fees your broker might charge, increased auto insurance rates.

So, maybe the borrower finishes demo does some framing, then draws $10K on that loan.This way it allows borrowers to be fully capitalized, but protects the lender from over-committing capital until the property has progressed, therefore increased in value. 

If you can increase income / reduce expenses enough to meet your target appraisal number, you may be able to get the loan size you're looking for.

The rent needs to be raised this year 2018, taxes increased and so did maintenance costs.

When I run my numbers on the actual income and expenses on an SFH, I make sure I account for the increased taxes that are going to occur after purchase, you can call the tax assessor for that property to check or go to the county's website.

But it increased the value of my home by about $150-$200k and I didn’t pay a dime out of pocket for any of the construction.