What if you bought the second property with a loan such that it was also cashflow-neutral?

I carry a mortgage on my other home that is valued at about $480K with a 300K loan @ 2.25%.

For example, Mike has a house he wants to sell and he has a $150,000 loan on it.

Honestly, their loan programs are too good to be true!

I would think of this problem differently: I might encourage them to explore ADUs... this would give them an additional stream of income and would likely only require a relatively small chunk of money in their savings (relative to the total cost).If they could partner with someone that has experience building and/or flipping (to qualify for the construction loan), then cash them out with a 30-yr DSCR loan (and use that as the builder's profit), then they could rent the property and enjoy the cash-flow.

We'd like to seek a construction loan to complete the build of our new home - does anyone know if a typical real estate rental business plan would be sufficient to show potential income increase? 

I want to do my first fix and flip in the future but I am afraid that no hard money lender will give me a loan considering my resume.

@Dustin Mccoy What you have is a chattel mortgage similar to a car loan.

If an investment property you can do a DSCR loan. 

Are you getting a loan to build or using cash from some Refi?