When we order an appraisal, we are handing in a rehab budget to the appraiser and they will use this to help calculate an ARV which is used in the lending calculation. 

Hi there,I own a handful of longterm rental properties in Chicago and have sat on an HOA Board for many years.

If you are on cash accounting, yes you could do that.On the other hand, you are ignoring carry-forward losses. 

Totally understandable that you may have time to commit to it, as it is extremely hands own.

That's how I started, with a company called Flip More Deals (currently called the Growth Collective) they were very hands on and helped me through the entire process and connected me with a lender and gap funder, very hands on you should check them out.

Based on my research we found out that you were trying to close on a cash out from another lender to have enough money for our transaction at hand.

I can show you how to do it (holding 'dozens' of deals' in his hands.)  

On the other hand, true private lenders are not professional lenders and hedge fund type lenders (which is what hard money lenders are), but instead are regular people in your circle and sphere of influence.

By the time they research and go down all the rabbit holes of different strategies, never sticking to one in order to gain traction, they get exhausted, throw their hands up and never take any real substantive action.Pick something and go with it, all the way to its conclusion.  

In 30 years the balloon payment is due to the seller and that's when the taxes are due.Coupling a monetization loan to an installment sale accomplishes the same thing but puts cash in the sellers hands that can be re-invested.