Yea they would keep that in place and you'd get a second position mortgage for the rest at, well, higher than todays rates.

This might give a one-time (non-scalable) boost to cash flow, offer multiple value-add options, and allow the house-hacker peace of mind, via the assumed mortgage, in long-term breakeven or positive cash flow in the event that the value-add plans end up not being executed, and/or the person has to move out, and rent by the room or STR become unavailable for some reason at a future date.

Would love to connect with you and explain our options to advance your projects forward!

I selected Lewiston for the post as I didn't see an Augusta option, but I do work all over the state.It was my family's property management business that brought me to Maine and sparked my interest in and passion for helping investors achieve their goals. 

none of the above  Any insight into other options?

I think you’re under a misconception that’s leading you to think you have options you don’t…You say it’s worth $1.1M and you’d net $500k.

Hard money lender/DSCR - both are good options.

Just trying to see what is the best option. 

.: Quote from @Stepan Hedz: Phoenix, AZ, offers a young myriad of options for real estate investors, particularly in the distressed sectors.

.- Suggest you try to network with other landlords in your area, check MeetUp app and others.Your other option is to hire an attorney, but understand you will have to pay them for your ignorance.