I was referred to this website from a friend I met here and I have truly been enjoying learning through all of the free material, articles, and blog posts.

@Minka ShaHi Minka, few questions that will either make some of the above options, not options at all, and maybe some alternative options to think about. 1.

My W-2 is a nurse and interested in providing alternate housing for elderly who often need oversight. 

They have economies of scale for materials and things like HVAC systems and roofing.

Unless you know a licensed contractor extremely well, have supplies already or decide to explore alternative methods for getting it done, my guess is your renovation expenses will be well north of 40k. 

If you were considering refinancing w/ an "alternative lender" (eg. non-bank/credit union), many have paused their SFR programs.

Materials, subs, labor, overhead.

I would pay him for the material and a reasonable labor cost

Alternatively, you could get a LOC on one or more of them if you don't need all of the cash right away. 

I haven't really used it but they mentioned to me before something about 1 year loan at purchase where you can bring in a contractor and appraiser, have the appraiser do an appraisal based on what contractor envisions as appropriate rehab (including what materials he/she will use).