After doing the numbers and a bit of research I realized above-garage units tend to behave quite a bit differently than "regular" units. 

The lender stated that the best route for me was an FHA loan.

(Note: rent would cover PITI with $2K going to P and an additional couple hundred to spare per month not accounting for maintenance.)Obstacles/Questions: no construction experience and builders are currently asking top dollar; not sure if partnering is an option (not a request, just wondering if it is a valid option); what might be the financing options of whatever route we choose (e.g., HELOC on our current house, construction loan, etc.) with goal of being in a decent cash flow position preferably in a couple of years. 

Of, go another route such as buy the debt and perfect title via foreclosure, etc.

@Don Griffith@Ruben DominguezYou can still go the route of conventional with smaller loan amounts.

I though the Fortune Builders guru route was they way to go...This site and it's members are WAY better!

I'm looking for a route to build monthly revenue.

As long as you are willing to dig in and think outside the box on a regular, you just may just end up enjoying that same experience. 

I signed up last July or August and have been regularly taking training. 

It's basically irrelevant for tax purposes in this case.Furthermore, interest income on loans you make are considered regular income, so you get to pay regular taxes on those.