I want to do things the right way, but feel the pressure of a tight budget that will get drained considerably by the permit fee and multiple inspection fees. 

Therefore trying to get a bit creative with the financing.Positive cash flow will almost be impossible (as I'll have to probably take one bed away, and then build a bath and a kitchen) in what I've been finding, so Im trying to offset the mortgage as much as possible.Long term, ideally I get to keep it and the 2nd unit adds to the cash flow if I ever dont need it anymore. 

When speaking to the owner (building rapport), your main goal is to figure out which of these main 3 is most important to them.

Depending on your income You get to take depreciation off your regular income (usually up to $25k) of 3.6% per year of the building’s value.Many of your everyday expense can be deducted from your income as business expenses. 

We have a pretty significant portfolio and are building more this year. 

Just be aware of the added services/costs, such as yearly inspection services, repairs, etc.

Let them know you will inspect to verify.4.

My question is, can I use one of the separate parcels as collateral for a construction loan to build a multifamily on it (of course adhering to zoning regulations)?

Smaller office or shop buildings might bring in more money but need you to know more about running them.

I tell them who I am, how and where they can pay rent, how they can communicate with me (ordinary vs. emergency), and that I need to perform an initial inspection of the property within one week.