And they're designed that way so they can absorb excess debt in a 1031. 

This is actually a great way to find out which design or template is converting well and then you can stick to the one which gives you higher conversion.

What are the suites currently designed for? 

However, there is an FHA Construction loan that is designed to fix up/build homes for owner-occupied properties, but the down payment is usually about 5%.

It's by design.

I've done remodeling on properties and used to be a kitchen and bathroom designer for 8 years. 

I give them a verbal and written warning before accepting any money from them:Tenants acknowledge the rental was represented through marketing materials designed to attract applicants for in-person inspections.

My background includes architecture/ interior design, construction and project management.

One way to potentially get around this is to submit your offer under the name "Michael Eaton-Byrd or designated entity," which gives you flexibility to take ownership in a LLC, if you choose.If you're working with a HML, your offer should be as good as cash.

This forum is more designed for residential stuff.