Hey Rob, if my client or myself was in a similar situation my advice to myself and my client  would be... if the profit margins are there, you have the capital to make the deal happen, there's news everywhere about rates being cut in the near future, and it doesn't put your family in any major financial stress by you making this deal happen and more importantly your comfortable!

When I was considering doing a flip, I was looking at least minimum $40,000 profit margin in the Midwest when I did the deal analysis. 

I would not weaken my protection to attract a marginal guest.

Can he actually PM or should you hire a professional - that will change margins. 

Also, if you feel a partner who may be able to lower the interest rate is necessary to make the transaction pencil, you are dealing with too low of margins.

i agree with @Alex Hunt. the margin between the two interest rates is negligible in today's market. 

Considering the potential for unexpected costs, especially with the unpermitted addition and the need for significant updates like roofing and windows, the profit margin seems tight.IDK, the significant dip into your savings for a project with many unknowns could strain your safety net.

We originally bought the home as a trashed foreclosure so knew we had the margins to do a total rehab but this has become a special project.

While it takes effort and persistence, developing your own system for finding deals can ultimately lead to more control over your investments and potentially higher margins without the wholesaler fees.

You can always split utilities at your first place later, and the inflation of cost will be marginal.