I get a warm fuzzy feeling knowing there is only enough collateral to cover 40% of the loan.

Here’s the caveat...I just went 1099 with my job, so every lender I go to says I need 2 full years as a 1099, before they will cover a note.

If i move out after a year, do i have to cover whatever the difference is from the 3.5% to the usual 20% or so of a conventional loan?

In my case I would probably have to experience a rental drop of 25-30 percent before my rent would not cover all my fixed costs.

so be it... at least they let you know ahead of time instead of trying to cover it up or get away with it.Scenario #2The kitchen outlet is no longer working and wants you to repair it!

You can get insurance to cover volcano damage, just like you can get earthquake insurance in CA. 

Please see the following for more on this and here is the particular section that covers the mandatory 20% federal tax.https://www.irs.gov/retirement-plans/plan-particip...

This means that you would likely only be able to use 1 unit's rent as you will occupy the other, which means you might not have enough income to cover the mortgage requirements.  

Buyers are not very willing to cover the commission because they are use to no charge for the realtors services.

Habitat would do it but that's a charity program as you know.My only suggestion to anyone engaged with new construction with Morris is to be uber careful.Home inspections at each phase is critical.. once you cover the walls you cant see the corners that are cut.. even though it could pass city inspection.. also you run into mechanics leins and so on and so forth.. building from ground up takes a little more experience than rehabbing..