He can adjust the replacement value down low, lowering our premiums... but then how much is enough to rebuild?

I currently own a small construction company and I'm looking to start investing soon.

If it's a new construction freshly rehabbed it would sell for $225k-$300k depending on where its located but older houses that are newly rehabbed sell for $200k-$250k.From a buy and hold side I would never want to be higher that 65(maybe 70%) LTV and with this model I don't see why I would ever have to.

He is involved in the construction industry and has a few rental properties.

Figure out how to make adjustments so the job doesn't consume you.

If I had $100k and needed it to throw off $72k, I'd buy a lot for $70k-90k, borrow $200k via construction loan, build a spec house, and sell for $350k-$375k.

With $3,000 budgeted (which seems high pending condition for just carpet/paint) and it being the slow point in the construction schedule you should be able to get some great bang for your buck there.

My partner on the other hand used to have a construction company in Las Vegas, but when the economy went down so did his company.

I would consider buying a multi-family you intend to Owner Occupy (OO) and purchase it using conventional (bank) financing construction loans.

A little adjustment will make a big difference when it comes to doors.