These could work but understand that if you have to pay a double-digit interest rate or close for 25 years, that could make your property extremely expensive in the end.

They require 20% down and it comes with a 5 year ARM. 

Having only come out of pocket a small amount for downpayment (5%), closing costs and some repairs, our CoC will easily be in the high double digits (after factoring in repairs/maintenance).

I'm looking at a construction to perm 10/6 ARM refi, so I can build an ADU.

Your best path for this property may ne a D.S.C.R. bank whose terms are running around 5.99 for a 10 year adjustable arm with 20 year am.

I could see that more easily if it was an arms-length transaction rather than a purchase and sale between family members.

Ensure that you have an exit strategy in case rates hit double digits.

The investors trying to make their first million often do not understand this as they are at a different point in their life and investing journey.If I am worth 20 million I can take 10 million cash and buy larger properties for better cap rate and usually achieve 6% or better cash on cash and with mortgage paydown hit double digit annual returns and do nothing but collect a check.As for someone not renewing after 25 years then great if rents are below market upside for me and land likely worth a ton more than 25 years ago and traffic counts much higher.

@Kevin DombrowskiIf you are in fact buying the property from your family member and they are executing an arms length one year lease with security deposit, for fair lease value, you should be able to both get a fix and flip loan as well as also cash out at the completion of the construction project.

It seems like the media, and clickbait Youtubers, want to portray single digit increases in markets that had 10 or 20 or 50 percent increases in the last few years as a "crash" somehow.