130k sounds like a lot of equity, BUT most second position products are only going to go up to 70% or 75% loan to value. so, you can not borrow a large portion of that equity.

. ($140k purchase price - ($177k loan - $82k rehab portion)).So, that means you are entitled to 142/(142+45) = 75.94% and your friend 24.06%.

@Griffin DalrympleIf there's no other way, the options are to 1031 or sell a portion to a partner.

The only solution: jackhammer and remove the slab over the line, dig out old the line and install a new one, backfill it, re-pour the demo'd slab, and re-finish a substantial portion of the basement...needless to say, we got some real concessions from the seller before closing (to offset not just the cost of the new line, but also the downtime, holding cost, and vacancy that had to happen while the line was being replaced).I never buy a property without doing a scope (and it's saved me many tens of thousands of dollars, and major headaches).Good luck out there!

One thing that wasn't mentioned is that the road leading to many of the homes often floods making a good portion of the rental homes inaccessible during storms & also resulting in early evacuation due to storm threats. 

It get held in an account along with the security deposit and each month the monthly portion can be released. 

The inspection will highlight everything that’s wrong with the property, and it’s vital to fix these issues first before tackling cosmetic updates.4.

Keep in mind, if that property is rented, you should be able to use a portion of the rent for your debt to income calculations. 

The house in under her name but the ex is paying a portion of the mortgage because she has the kids and he is the one in the mortgage.

Sticking to target margins during negotiations was vital to preserving investment value.