We look at lenders (so long as they lend in the asset class you are considering) as an additional line of due diligence (they deeply care about their money and they are likely more sophisticated than you are).

Does this completely prevent the tax lien holder of getting additional gains after foreclosing? 

As a limited partner, you would be able to participate in the project without being involved in the day-to-day operations, while benefiting from the potential profits upon completion.If this sounds like an opportunity you would be interested in, I would love to discuss further and provide additional details on how we can collaborate.Looking forward to connecting soon.

In addition to @Nicholas L.'

I was fine with all these numbers.Then I met with contractors...First, I wanted to add a new bathroom and approximately 450 sq ft of additional living space.

In addition, due to them being eligible for conventional non-commercial financing they typically have lower cap rate than 5 units and more.  

Incorporating a washer-dryer hookup in the main house could be advantageous.This addition not only increases the convenience for potential renters but also adds value to the property itself.

I have about $100k in capital reserves and can leverage the 2 properties for additional capital, as needed.

Additionally, applicants can (optionally) upload tax forms and bank statements for our review.If you're looking for a website you can utilize on your own @Bruce Woodruff mentioned a couple that are popular.

(G) Acceptable forms of payment of Rent (including Additional Rent) are ___ personal check, ___ cashier’s check, ___ bank check, ___ money order, and ___ the following online/ACH payment methods ____________________.