Especially if it’s owner occupied as many don’t realize that if you don’t send statements to borrowers as an example that’s against CFPB regulations.

I have built multiple successful wholesale businesses and I am also part owner of a brokerage here in town.

A compelling enough piece of land has not arisen yet to start this journey in earnest yet.The analysis is effectively the same as buying: what are all your costs, what are your stabilized cashflows, and what is your terminal value, take your overall timeline and determine your return.In Cincinnati, OH, during the run up (in particular, but also pre and post peak) the major owners in the market that have historically acquired existing, started building.  

Ashton, Here is what I will do,I will purchase the property at $700k to $710k (or shift the closing cost to seller) with new Fannie Mae product with 5% down or ~$36k (pull from HELOC) - owner occupancy for a year.

I would like to do it on my own, but I am a long distant owner, I wouldnt be able to deal with any home issues, but I suppose as I dig, I will find ways to change that.  

However, my lender for NYC area mentioned that they could use any unit, even the smallest one, for owner occupancy.

Owner is willing to assist with financing property is free and clear.

Based on a rough analysis for a project timeline, I believe the total project can be completed in 5-7 months with the team I have available if we get involved in completing the work on the project.Deal Analysis as a whole - Actual Costs may be slightly different but estimates should be fairly closePost Construction Estimated Market Value - Lot 1: $379,000 Lot 2: $307,000 Total Estimated Market Value $686,000+- $102,000 - Cost to payoff HML & Previous Builder- $154,800 - Estimated Cost to complete House #1- $170,370 - Estimated Cost to complete House #2: Includes New Well/Septic $7500, Impact Fees $2100, Permits $1000= $427,170 - Estimated Cost to Payoff HML, Complete Construction on House #1, and Construct House #2+ $686,000 - Total Future Market Value- $20,580 - 3% Buyer Agent commissions as the current owner(Listing Agent) will be listing these properties without compensation- $2,538 - Real Estate Transfer Taxes- $1,500 - Settlement Costs Paid at Closing______________________________________________ $234,212- $27,900 - Payment to Seller for Down Payment made by seller to HML @ Origination (For her to break even)= $206,312 - Potential Return before any Interest/Fees/Taxes/EtcI've spoken to a few HM Lenders and ran rough numbers by them.

If FICO was 720/ non owner/ a purchase/SFR/ with 20% down rates are around 8 with 8.344 APR 30 year fixed today (there are points always).

Previous owners converted basement space into livable space (kitchen, shower, bathroom), but it does not comply with legal ADU unit standards (one separate entry, 6'10ft ceiling).