@RIck Montanari:Sorry- haven't had time to read all of this thread (and have to get back to work also)...This is something I've considered- but possibly a slightly different way. 

I think people often choose to believe what they want rather than try to look at these questions from different perspectives.

What are the limitations and differences when compared with regular home hard money financing?

The "why" is up for debate, but we don't need to freak out if someone has a different opinion.

My concerns with delayed financing are the double closing costs.I don't understand the mechanics of the different loans and what the tax benefits are of the different options.Thanks to everyone who has replied to my previous questions.  

Welcome to BPLots of factors - but a lot of people in your situation have had success doing the house hack in CA and then investing in pure rental properties in the Midwest - everybody's different, but that path seems to be a strong one for investors in CA that want to invest in RE but don't want to leave!

Property manager's business income is different from personal.

Prior tenant had no complaints.Two different plumbers have gone there to investigate and neither smelled anything.

I would repeat that a couple times and get a couple different names. 

Also, new construction is a different beast than fix/flip experience, so lenders want you to have new construction experience (and/or a builder-partner), simply out of risk on their part.