STR inventory in Pensacola exploded between 2020- and now which has driven down occupancy per unit and in some cases rates. 

@James Rodenberg, I think you can make either work, depending on what you want.

What Bruce says about new homes is accurate.New communities CCRs needs to be reviewed so you are not stack in a property that can't be rented out.ROI will be very los what I see in new communities is 10yrs in average, it will all depend on the time in the market.Another thing with new communities in those growing cities is that they are not investors friendly for LTR as the rent price tends to be lower than in other market.However there are plenty of opportunities in North Dallas, many other cities with growing population are great to invest.

In many cases the wire coming into the house is not rated for 200A.  

Wanting to explore other options or find out other financial strategies for trying to build a detached home on our lot without having to refinance out of our 2.75 interest rate with a cash out or doing a HELOC.

Heloc I think we could get $175k, maybe DSCR, I am a veteran with service connection disability rating 40% but with my mortgage and car loan not sure I could make debt to income work.  

I have a million classified posts showing the style we build. you'll never get the numbers at that rate. your numbers are way off and way too low. work with an experienced general contractor who knows this stuff. 

BTW this will also help you understand local rent rates.

Even under this scenario, with a 50/50 split, you will not be getting paid for doing all the work.Another option would be for you to put in 50% of the purchase price using an LLC that you own 100%, borrow the remaining 50% from your investor as a 2nd position loan at a fair interest rate with points, and borrow the rehab under your personal guarantee.Better, if you can find a lender who will lend to a newbie, and they are out there, you could borrow the purchase money using some of your cash as a down payment, as well as all the rehab funds using a construction loan.

It’s an excellent spot for flipping properties aimed at middle-income buyers.Each of these zip codes offers different advantages depending on what you’re looking for in terms of community, property type, and investment scale.