Thank you,Inga I would do 150% the rent and require them to pay for a monthly cleaning service

These loans take more time, require more docs etc. 20% down requirement (you are closing one time for the construction -- includes land -- and the permanent loan).You could expect rates in the 11-15% range for HML/PML.

I am in an area that is lacking in affordable housing, younger folks have been pushed out of Portland because of rising prices and it appears our city is pretty mobile home friendly so we'll see if it goes anywhere!

We required it to be moved off the lot at buyers expense. 

Also your Notification of Cancellation requirements?

My main concern is that once the property is rehabbed and rent ready, what qualifications do banks require to refinance? 

But it requires some renovation and i am looking for funds because he cannot finance renovation cost.

Begin by meeting with the builder to understand his requirements.

Another solution is to write 1 year leases with no automatic renewal such that a new lease is required each year instead of automatically going month-to-month.

Maybe it's worth finding a cash-flowing asset that you can invest into that doesn't require a new mortgage on your part -- something syndicated or a NNN TIC property where you're just buying into a portion of the property and its existing debt load.