Hard Money is cheaper than equity but more expensive than conventional and probably more expensive than Private.Two other things to note.

Based on the down payment it sounds like it will be owner occupied, unless it's not a conventional loan.If owner occupied with excellent credit, solid income with low DTI, that rate is very high!!!  

Little higher rates than conventional.  

My thought is to refinance the construction loan into a more conventional mortgage and pull out any additional equity available to keep building more.

Did not get to see the inside, but outside was grass overgrown, there was a wooden construction as part of the backyard fence (can be seen since it is an end of the street home), and looking inside the window looked empty inside.

Did not get to see the inside, but outside was grass overgrown, there was a wooden construction as part of the backyard fence (can be seen since it is an end of the street home), and looking inside the window looked empty inside.

That is money that can be re-invested and should easily outperform a conventional RE financing. 

Get an FHA loan or conventional has some 3% options last I checked. 

These loans don't require any personal income verification and can get rates relatively close to conventional (typically mid 5% range at par for 30 year fixed). 

The property is held in an LLC and we have the DTI to obtain a conventional loan by purchasing the property from our own company.