We put about $50,000 into it and it appraised for $550,000.We then pulled a HELOC for $130,000 on top of ~$50k in savings and another $100k in 401k loans, and $50k personal loan.

I utilized a HomeStyle Renovation Loan, a conventional loan that enabled me to finance the cost of the rehab.

You really think that is the norm to charge 13% and 3 points on a 400K loan over 8 months?

I will fix things that break, but I will not make changes or improvements to the property just because the tenant asks.If they are that unhappy, give them one chance to break the lease and move out. if they choose to stay, that is evidence they are happy with the property and will fulfill their lease.

As they described it, the principal of the insurance earning interest wasn't diminished by the loan like, say, a 401k loan would be.

I am looking at a cash out refi or a heloc/heloan, a 401k loan, a home equity agreement or even creative financing to do this.

We would be looking to use a conventional loan. 

Hi Jason, The first time home-buyer program would apply if your wifes income was able to carry the loan from a debt to income ratio standpoint.

I see lenders going down to $50,000 loans today which comes out to an ARV of about $67,000.

Instead, I gave her a no-interest loan; she wanted to get a new car and never had one before, so I bought the car outright (a sensible Kia Forte) and essentially gave her a no-interest loan.