Your return would be 9.6%.

@Rohmah Ismael this can all be covered faster on a phone or Zoom call.DM me...

Even if you get a great deal that is 20% below market, appraisers will typically be anchored by the last sale price and you may be stuck not being able to pull out as much cash as you need to pay off the HELOC.

Additionally, another neighbor who owns an adjacent parcel has expressed interest in joining the project, contributing their land to the development as well.I believe this could be a great opportunity for all of us, especially as a unique retirement plan for my family and my neighbors.

But the 50% op ex ratio will be close enough for first pass. 

@Samantha Bartlett we've got a lot of PM info on our wesbite, which I cannot list as BP Moderators will delete this post.

If the property is considered non-warrantable, you should still be able to do a standalone 2nd mortgage at 75-80% CLTV on an owner occupied nonqm 2nd mortgage. 

It may vary from others' advice, and it will be up to you to determine what feels best for your needs.In your position, it is super smart to rent first. 

When you replace a roof that will be about 6k, assuming 25 sq, so that month zero cash flow.

Debt to Income Ratio will be used for more conventional types of financing (Fannie/Freddie).