If you build a new house with your dad you'll have 3 advantages; you can build it to your exact specifications, you'll have minimal maintenance issues and, most importantly, you'll equity right out of the gate.

As for advice, ensure your personal finances are in order, minimize your debt, secure a job, and learn learn learn form all the resources here on BP and any real estate book you can read.

This will help to minimize interest payments over time, if that is a goal.

@Yosef Fares I'm no short sale expert but I relative of mine purchased a short sale last year and it is a great property that required minimal cosmetic work however the process for them was a huge headache and took well over a year to complete.

The problem seems to be the delays with the rehab which you say took some 6+ months.

@Kenny DahillWe like taking the approach where we minimize our LTV ratios within our loans, regardless of whether or not we COULD take out additional cash during the refi.

Due to this situation, I am currently searching for REOs or foreclosure properties with minimal damage to invest.Surprisingly, I found one property in a good neighborhood but not in a good location.

If your plumber is behind schedule, that means your drywall guy can't close up the walls, the painter can't paint them and the finish carpenter can't put up the crown moldings.That one delay can push your project back for weeks.  

@Jean-Thierry Aleman I would look into the delayed financing option if you paid cash to re coup those funds.  

My other concern is making sure that I'm analyzing a deal properly and minimizing any risk.