So once upon a time it was actually possible to get 0 down loans for long term rental investing on new construction.

I have a buyer that wants to buy it from me top dollar with an FHA loan.

I have student loan debt in the 20k area, and drive paid off vehicles that require a lot of upkeep to keep running me 120-150 miles round trip to work.

I would do a 3.5% FHA loan and would est a 150-200$ cash flow.

Normally, that is what college students do, and it is justified because they pay their rent through student loans.

But, of course, with our mind set on building a rental portfolio, and the market we live in, it didn't make sense not to add an apartment over the garage to create cash flow for the mil to cover her expenses and travel as she's always wanted to.So, here we are, moving forward, plans in place, ADU permit acquired, ready to break ground and having trouble getting the Mil financed.First attempt was to get a Heloc loan, keeping it separate since she has a great rate on her first.

Up/down double $57,000 purchase price (hopefully less)PITI = approx $500/mo with 25% down conventional loan$14,250 down + closing costscurrent rents total just over $1200/mo for both - leases in placelandlord currently pays about $200/mo for water/sewer/trashI figure about 10% vacancy and 10% maintenance which leaves me with about $400 monthly cash flowThe two major concerns I have are that it needs a new roof (tear-off) and that it has a funky layout.

@Jason DiClemente The loan amount is too small.

The current spread is at all time lows, so finding deals is very tough.If you find a deal, hedge your long-term risk by keeping your loan to purchase low and using long term (10+ year) debt.

Are you then able to leverage the equity for construction loans at least?