Have you confirmed insurance and taxes with an agent and the town?

John keep in mind that is insurance companies paying for the new builds.. free market is not that high

BTW, I think the whole “must own in an llc” is a bit overblown anyway...keep good insurance, maintain your properties.

I want to put together a leather bound notebook that  would have a good 1 sheet with info a bank would like to see and then have more in depth financials as other documents that I will need during the application and underwriting process.

At 12mo+ that lease income will add to your income to help (not hurt) your DTI.in time you can REFI out the FHA once equity has built ideally with some cash out REFI, but the REFI will be conventional investment at 80% LTV.Its said that a 95% conventional is really a better product for those who qualify then FHA, which today the Mortgage insurance never drops off, where in conventional it will drop off when at 80% LTV.

Since her home was flooded due to an interal plumbing issue and the insurance company is paying to remodel the existing old (1920s) and dilapidated structure (could tell by looking at some of the 2x4 studs revealed in the partial internal demolition), I decided to find out if my mother can use the money should would receive from the insurance company in the form of a check, put that towards the remodel, and in addition secure a construction-to-permanent loan in order to fund the complete transformation of her 1 bed 1 bath 1,200 sqft home into a 2-story duplex that she can rent out, airbnb, etc.

Your Scope of Work Document should include as much detail as possible including:Detailed List of Repairs Plans/DrawingsList of Materials (SKU #s) & defines who's responsible for purchasing (you or Contractor)Payment ScheduleThe Payment Schedule defines the Payment Terms of how and when the Contractor will be paid on the project.  

I'm not sure if this would help but I am the owner of her officialDeath Certificate and in the (Informants Name) box my name is on it, I was the one who paid for her cremation and did all the legal papers after she died and I was the one who she left her Life Insurance Policy to as well as I am her 401K Beneficiary...

Loss of insurance on the house for non payment.

The mortgage would would mature March 2043  (approx 25 years) and would be $1454.50 per month (not including taxes $3794 per year and insurance - no PMI).