Construction loans are different from financing rentals where the lender’s involvement is often limited to collecting annual financials, tax returns, leases, and insurance renewals.

From a tax perspective, the main thing is making sure you’re getting the most out of your current rental, things like depreciation, property taxes, insurance, repairs, and other expenses help reduce your tax bill.

How much importance are you placing on speed of funding and flexibility, vs. yield and underwriting standards?

There is nothing wrong with that, but they usually have more rigid underwriting criteria, especially around unit types, minimum dimensional standards & experience.How far into underwriting did you get?

A cost segregation study basically separates your property into components that can be depreciated faster than the standard 27.5-year schedule.

Insurance policies in places like Florida, Texas, the coasts—they’re climbing into absurd territory.

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

Outline how they’re secured (first lien, insurance, promissory note, etc.).* Communicate like a pro.

The downside is making sure the seller’s lender doesn’t call the loan due and that all paperwork, especially disclosures and insurance, is airtight.

Pricing:You’ll generally be above standard rent, but not quite short-term rental rates.