@Jacob Hancock-no reason to start with a new build - way too much risk and complexity-start with a house hack with a low down payment loan-if it goes well, do it againgood luck

Leverage the 0% down payment, but be mindful of funding fees.

I've had a fair number of buyers recently shopping for midterm rentals in Denver and Colorado Springs, and I was surprised to see how many associations have a 6-month minimum rental period, which cuts out a big portion of your medium-term rental tenant pool.

We would also provide the down payment and manage the property so that my sister could simply live in it for a year and pay rent until she decides to move.

I've seen extensive foundation repairs done to cinder block walls that are bowing from external hydraulic pressure, and they've been repaired with extensive steel beams, tension systems and a drain cut in for around $12,000.4" is a fair bit of slope and to put in floor leveler...well, that's a lot of floor leveler.  

He is asking for a 25k down payment and then a 5% interest with a loan for 7 years.

The one caveat is that I will be unemployed during graduate school, and I will be solely surviving off of grad plus loans for tuition and mortgage payments.

I have no income as a student, but have money for a down payment.

True, you didn’t have to put up the $20k, but putting up the $20k down payment and utilizing leverage increased your return by $40k, a 200% return on your $20k investment.  

But our lender is only offering us a renovation or construction loan, which I can understand.So my questions are: should we put down as much as possible to lower the monthly payment of the reno or construction loan?