My concern is what will happen to my future insurability or insurance cost increases if I go this route.

Moreover you don't have to pay any fees, commission or standard closing cost either.Let me know if this interest you.

Most lenders will not approve under $90K to $100K because it violates high costs rule.

And the soft costs can easily pass 100K before your project even starts. 

You also have closing costs associated with it and you are only able to pull out a certain amount.

These developments offer the amenities and privacy of single-family homes with the flexibility and affordability of rental properties, filling the “Missing Middle” gap in the market.Another trend that has emerged is the use of light gauge steel construction, which offers durability, efficiency, and cost-effectiveness.

Quartz is the most durable but also more costly.

Your local REIA can often provide similar information at a fraction of the cost, allowing you to allocate your saved capital towards your first deal.

Do you know repair costs (contractor background)?

They're expensive and will cost several thousand dollars more than a regular exchange.2.