The below is the closing costs breakdown the lender has provided.

My plan is to use FHA, 3.5% dp, seller covers closing costs. 

I’ve heard about ‘gap funding’ for fix & flips to cover down/closing/holding costs in addition to the hard money loan for most of the purchase price & rehab, but how realistic is it to secure that type of funding?

Plus, you could potentially get better interest rates and streamline your loan payments, which would improve your cash flow. 

It's going to cost about $550k to build and it has already appraised well over $800k.

There are some scenarios which can change the equation and take priority over the opportunity cost equation demonstrated above.  

Obviously aside from minor material cost savings the biggest reason is to save labor on all of the cutting in, which I feel would likely be moot with 3 sheens.

Holiday weekends in my area brings in many tourists as well and often times I can connect with those potential buyers when pairing the new listing with an open house.~ Lindsey

Option 1:Pros:Simplicity: You avoid the potential complications of alerting the lender.Maintains Low-Interest Rate: Since your loan is at 3%, you continue benefiting from this favorable rate.Avoids Immediate Full Payment: You won’t be forced to come up with $45k immediately.Cons:Risk of Detection: If the lender identifies the payments coming from an LLC, they might call the loan due.Potential Consequences: If the lender enforces the due on sale clause, you might be forced to pay the remaining loan balance quickly.Option 2:Pros:Transparency: Being upfront might build trust with the lender.Possible Flexibility: Given your solid payment history, the lender might agree to the arrangement.Legal Compliance: You avoid any potential issues with violating the terms of your mortgage agreement.Cons:Risk of Loan Acceleration: The lender could still decide to call the loan due, forcing you to pay the remaining balance.Potential for Higher Payments: If forced to refinance, you might end up with a higher interest rate.Given the pros and cons of each option, but a cautious approach might be best:Consult a Real Estate Attorney: This can give you a clear understanding of your legal standing and potential risks.Evaluate the Importance of the 3% Rate: Weigh the benefits of keeping your low-interest rate against the risks of potentially having to pay off the loan early.Consider a Gradual Transition: This method allows you to continue benefiting from the low-interest rate while reducing the risk of triggering the due on sale clause.

@Andrew GarrettI’ve been investing in NC for a while, the main issue with Raleigh is rents are low compared to costs of homes.