Typical equity build up time is 5 years, depending on your market.But can you purchase another rental using your own capital?

Also know that building a home seldom goes as expected - I have relatives that just built a nicer house… they thought it would take 9 months… it literally took 18-24 months between delays in permitting and the builder just not being able to get it done in a timely manner - often due to sub-contractor issues.  

We have been very blessed to have a large network of private lenders that we have built over time.

Up until November, actively licensed VRD (Vacation Rental Dwellings) could transfer one time to the new owner.

Do that enough times and you'll eventually find a deal you can afford.

We are in all of those markets you mentioned and can help streamline the process for you.You can also click on my website link in my bio to schedule a call! 

For a first time investor, I definitely recommend house hacking for most people as homeowner loans are by far the best in terms of rate and LTV. 

Interest income is interest income, unless you decided to roll some of the current cash into a self directed IRA at which point your interest income would be deferred for a later time and allow your funds to grow tax free.

Experienced developers, could you tell me how the process/financing works?

Rates are a bit higher but if you can leverage up to do more than 1 flip at a time, it will be worth paying the lender fees.