Hard money "asset based" lenders still require that you have skin in the game.

Please understand that this response is based on you NOT stating that there was a water leak, window leak, or some other obvious source of moisture.

You must have skin thick enough to deal with that and not sweat the small stuff.

If 40% is what it takes to get the capital, that's fine, but in my opinion that's pretty rich to the money source when you have 50% skin in the game.

It also allows him to get his refinance ready to take you out as part of the refinance so he isn't coming out of pocket for that.For him you are keeping some skin in the game when you initially rent it so that he knows you are placing a quality tenant(even though you would anyway that's what I would tell him).

However there are more than one way to skin this cat.

Mold and mildew in closets are common problems at the coast because of moisture and stagnant air, but building damage from water penetration is just as common.

As long as things are structured correctly and there is alignment with skin from the other partners you trust then I think this is close to the best of both worlds.

There is always other ways to skin a cat.....

i have one of those flex lines that is normally used for the dryer that's used for the bath exhaust fan. and sure enough, once a year (winter) it gets clogged with water since there is a dip in the pipe.if they go straight up or have no kinks, they are ok to be used for bath air (that has moisture). but with kinks, it builds up. so i just changed it to solid alum pipe (2 ft sections sold at HD) and will never have a problem again.so, depends on what you have. you might have AC unit in there and that's why it's dripping.