Choosing the most expensive insulation because it's the most energy efficient, should allow you to reduce and/or eliminate costs in other areas.4 - Energy efficiency isn't made up of added costs.5 - Energy efficiency is the product of reducing energy needs, not supplying added energy.6 - Cost effectiveness is a product of maximum use of materials, as in little or no waste.All of the above should be obvious, in parts. 

The investor starts with their own funds before we allow a draw and we will have inspections done as well to confirm work is complete.

You guys make sure you check and see if your state allows a homeowner to act as a GC.

If your all-in cost to build for below market value and you are able to place quality tenants, then you should be able to leverage the completed project in a way that allows you to pull out some of your initial investment tax deferred to fund future investments while keeping the rental income and future appreciation.I am a CPA by day and advise many developers on tax strategies.

@Paul Sassin Where I live the towns only allow the owners of the property to be billed for water and sewer.

The property is where my home is also located and I allowed her to put her home on the side corner.

I'm at the point new where I need to figure out if I should pay up in taxes and pass on deductions to report up or just write down and go non-traditional.

Maybe house-hack by renting other rooms in your space or a separate entrance to the basement (which would allow you to short-term rent that space).

One of the requirement that is the most challenging to obtain is a letter from the HOA saying that STR (less than 180 days) is allowed. 

Even if you are doing the management yourself having it billed into the partnership allows for simple accounting at the end of the year.