I will be in Houston Tuesday - Wednesday checking in on our rehabs.

I took out a Heloc on my home to finance the purchase (traditional mortgage) and rehab costs of my first BRRR.

I know that doesn't exactly address your question regarding the 3-plex being considered an investment property by FHA, have you talked with the loan officers about providing proof that your duplex is already fully rented out, to show your intentions of occupying the 3-plex?

There should be some that will have you put a down payment on the purchase price and then add 100% of the rehab costs into the loan, as long as the ARV comes back close to expected.

From a cash flow perspective its going to be easiest and most straightforward to make an ADU.PM me the address and I'll take a look and give you some ideas.

What if I purchased a mobile home from someone that has it placed on their own private land and then rehabbed that.

A Payment Schedule should outline Payment Milestones, Amounts & Terms which describe the work that needs to be completed in order for the Contractor to get paid, how much the Contractor gets paid, and when the Contractor gets paid.Form W-9You will need to get a W-9 from the Contractor so you have the Contractor's Name, Address & Taxpayer Identification number which will be used for preparing Vendor 1099s for your Contractors at tax time.Proof of InsuranceBefore hiring a Contractor you need to make sure that the Contractor is carrying the proper insurance to protect your property, investments & personal assets.

Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

Questions I have:Accurately calculating the rehab costs versus ARV especially without seeing it first. 

What type of insurance do I need to get as I will need to evict the person first and then do some rehab to make it a rental?