We could probably charge a little bit more, but most snowbirds are senior citizens on a budget so I feel we're close to the top of what they will pay. 

My loan person said we might be able to do a escrow withholding where they keep the money for repairs until after closing. 

My out-of-pocket $40,000You are into it for $430,000 plus closing costs for a questionable value of $450,000.

That will influence your how much you get in funds for buying the land and for construction, as well as how much you need to put down for closing costs.If you don't have the experience you could partner up with someone with experience whose also got cash to help you with this deal.

Refinance was $110k, no down payments and rolled in closing cost into new loan.

You could get a 30 year fixed mortgage and lower your LTV so that your monthly payment is manageable.

This falls under section 6.01 of that revenue procedures each year, the most recently applicable would be Rev Proc 2024-23, but the same language has been floating around in this annual Rev Proc for closing in on 10 years - note there are various caveats so this isn't a blanket statement on all changes related to depreciation expense changing in the second year.Before this, the mindset has been that one was required to amend, given except for this language, per the IRS one has only adopted an accounting method if they have used that method for at least 2 years. 

It would be easier not to do this way, because when account needs to be closed next year, I’ll have to go through the same BS. 

Lower of cost or market for determining the basis is also the correct way to treat a personal use asset being placed into service for business purposes.

So I'm not sure why you would chase after lower qualified tenants only to make the same rental rate?