I am new to this so I am running out of ideas but in reality to start living together we need a 4 bd house for our 3 kids and a bunch of pets so we know it would be a house around $800K until we can make more money from our jobs and side hustles.

It'll be more work on the front and back end but can be a great way to make money.

The equity she wants is $55,000, which I don't have in cash fully, but I own a home now with that in equity, and I have money in an IRA. 

**PITI is $522 a month (2%interest rate)** Actually cosmetically ready for renters and appears fixed up.On the inspection report the plumbing failed and it mentioned shifting soil in the foundation report. 

The bank from my understanding will be writing off a loss on this loan as there is not enough money to go around.Here is where it gets interesting, there is a second lien on the properties from a seller of a hotel that the current owner of the 21 unit bought seller finance. obviously there is not enough money to get this guy paid off as the bank is already taking a loss.

Hello BP,I have been a very active private money lender since 2014. 

I'll stay out of the weeds of dealing with potentially capitalizing that interest expense to the land while something is actually constructed.If the HELOC is being used to acquire land for a property that will be personal use, you are out of luck. 

If you are serious, this will be 100% worth whatever time and money you spend to do this. 

Thanks for the reference, I'll check them out.We actually built new down there.

Even though I have the leases and can show a few months of payment I have to wait to do my taxes and show the rental income there until I can actually use that income.