As long as no major structural issues are present, I think this could be a way to go.

If I decide to continue with the deal, I will get in touch early next week to get a quote from you and to see if you have any tips on structuring the deal to protect myself.

Here in California on a 1200 square-foot house it’s almost impossible to have a “good fire” (that’s what we call it) that is less than $100K in damages if it’s a complete gut to the studs, with even minimal structural damage would be over $100k.

I will use your method. 

Structuring a workaround would likely be considered tax evasion.

Hi Brendan ---Most Lenders use the Build First method with 3 even draws.

After dealing with the city I learned I had to do the remodel in two phases, first on the original structure, and only after it finals out I can add to the house.  

Hello BP, looking for thoughts on structuring a master lease...here is the situationHave a potential on 16 unit multi  --  this multi needs some significant work (although mostly cosmetic, looks like a dumb but it is actually a hidden gem). 

Most use an LLC - but that's a pretty blanket statement because there are several ways to set up and structure an LLC. 

Yes I have considered the rent to own method.