I do have some money, but need an additional $$ to start the demo/construction, etc.

You'll lose some tenants when you start construction. 

It is a beautiful new construction with pool and tons of amenities.

In some areas, you see a lot of new construction and great, high-rated schools- those areas are good for rehabs because they are in-demand if you can find a good wholesale deal.

Thanks for that dose of humility and constructive pessimism :)@Leslie Pappas I don't see myself doing option 2 because of worries about health but I am a huge fan of the 1st option.

Regardless of what I had I felt more comfortable with the construction business.  

If the appraisal comes back lower I would treat this as a quasi-construction/ improvement loan. 

I've been working construction for quite sometime and I order reak the benefit I must invest more time into the craft and less time doing what I want to do.The reason I've chosen to pursue real estate is because I want to learn but I also want to help people get a head the same way I would like to.Some of the avenues that i would like to learn about are wholesaling, fix and flip homes,buy and hold rentals, little or no money investing.I'm excited to see where this will go and 100% execited to change my life and those around me.

From what I hear, construction costs are crippling except for the 1%ers that prefer longer summers than Vail.I was fortunate to buy an REO in Eagle Ranch in 2013.  

I bought a house in November 2015, completed rehab construction in December at which time my refinance application went underway...lets see...January, February, March, April, May and a few days it'll be June...THEY HAVE TAKEN 6 MONTHS TO PROCESS MY REFINANCE AND CHARGED ME $1500 EACH MONTH THAT THEY HAVE REFUSED TO COMPLETE THE UNDERWRITING.