Also, most banks will not allow you to "borrow" your down payment, so what you would need to do is get the 50K personal loan and then have it show on your bank statements for two months (without showing the money being deposited, so in reality this could be 3 statements before you have that. 

Assuming you would have to permit things if you borrow hard money for reno, not sure I'd be interested in that.

Or you can sell it, split the equity, and go separate ways.I'm not a fan of borrowing from family/friends unless all parties are honest and everything is documented in a written contract.

I let the seller/borrower/co investor know that this is my offer and it’s what I’m willing to do.  

. - Hence why all the DSR loans we've seen have a required document the borrower signs that states the lender will start foreclosure proceeedings if the borrower ever occupies the property.Please correct me if I'm wrong or clarify anything I missed.

I suspect you spoke to bank employees who weren’t in their commercial lending division and didn’t understand your borrowing request. 

If the loan is not getting paid, you foreclose and sell the property to get your money back.The only other way you could get yourself in trouble is by giving the borrower cash before the work is done.  

Can you borrow against your current home?

Seeing a lot of borrowers have success across the country, especially with the BRRRR method and the AirbnBRRRR methods! 

Many appraisal in several locations have been coming in low, which can either kill the deal altogether or make the borrower come in with more funds to close.