My own Solo401k funds and borrowing private money from a friends Solo401k were my initial capital sources.

Is there anything left if you give him half the equity and can only borrow 75% of the value? 

Hi Charles, As long as the borrower can show they have similar renovation experience, you should be able to do 80-85 on the initial PP and 100% of the rehab financed. 

Will the mortgage holder sign off if the proceeds go to an LLC that isn't their borrower?

@Brad Tullif you're buying entirely with borrowed money it will be extremely difficult to be profitable even in the long term. 

When you look at cash flow modeling, borrowing much more than that causes it to be tough to get a positive cash flow.

I would say if you are originating them you need to be very careful with how it's drafted as if payments go toward paying down a loan then even though you call it a lease option a judge in a judicial state will view it as if the borrower then has equity and treat it like a mortgagei think that's where it gets a bad rap is a lot of people doing them do not know how. 

You want to make sure your lender understand this as  lot do not and you will waste a lot of time if you are trying to borrow more then what you purchased the house for. 

@Austin Tessyes, you can get a loan to do a flip, but flipping still requires your own cash - it's typically impossible for a brand new investor to borrow an amount that covers all of the costs of a flip.  

I'm sure there are more FHA loan experts on the forum, but in general a borrower can only originate 1 FHA loan at a time since they are required to list the property as their primary residence and live in it for at least 1 year.