This changes the game.Example: Studio Unit (fully furnished, permits, foundation included)1) Market Rate, No IncentiveBuild cost: $200–225K | Market rents today: $1,500–$2,000/mo | NOI: $12.6K–16.8K/yr | Yield: ~6–8% | Payback: 12–18 yrsSolid, but long payback and moderate yield.2) With Charlotte’s $80K Forgivable IncentiveEffective basis: $120–145K | Program rent cap (8 yrs): ~$1,100/mo → NOI ≈ $9.2K/yr | Yield during affordability: 6–8% | Forgiveness adds ~$10K/yr “earned income” | Payback to recover gross cost: ~11–13 yrsThe subsidy de-risks the deal—guaranteed inflows cover build cost faster.3) After 8 Years (rent cap lifts, market rents w/ 3% compounding)$1,500 today → $1,900 | $1,750 today → $2,217 | $2,000 today → $2,534Year-9 ROE after incentive: $200K build / $120K net basis → 13–18% | $225K build / $145K net basis → 11–15%You exit affordability with a permanently lower cost basis and market-rate income.

@Kevin Wood: For those temporary and permanent differences accounts, move them to Other Income and/or Other Expenses and see if you the reports works for you. 

Hi Since you’re looking to finance part of your new build, there are a few options that could work well, from construction to permanent loans to private funding solutions.

You might be able to keep paying for a while under the estate, but that’s more of a short-term workaround, not a permanent solution.

A few things to note: Most conventional or bank financing for mixed-use requires closer to 20–25% down, especially on buildings with commercial space.Hitting 10% down is tough, but there may be creative ways to structure it for example, a bridge or rehab loan that funds a portion of the construction, or bringing in a preferred equity partner to effectively reduce your cash in.Bridge / Rehab Loan (Interest-Only, 12–24 months): Could cover purchase + rehab and get you to stabilized ARV of ~$700K, then you’d refinance into permanent debt.DSCR or Bank Loan (Permanent): Once stabilized, you could refi at 70–75% LTV.

I was curious about one of the things you said - "mortgage insurance (MI) on FHA loans is permanent unless you put down 10%+". 

Financial freedom means more than just matching your current income—it's about sustaining your lifestyle permanently.

I would not use a revolver for a permanent downpayment.

It helps with material participation but is permanent.

Another consideration is that Heloc lines can be converted, frozen, or cancelled, whereas a cashout refi is permanent.