Quote from @Christopher Lynch: This is a solid start for the capital partners willing to do the 100% fin and then 50% on the profits.

It sounds like you’re in a great position to succeed, given your extensive renovation expertise.As a fellow real estate investor, I completely understand how challenging it can be to choose the right design elements, especially when you want to make a space appealing to potential buyers.

From what I understand, a 1031 exchange doesnt apply in this case, and so I will have to pay short term capital gains on the appreciation ?

Make sure you have a solid understanding of the revenue and expenses and that you are able to verify everything.

@Brandon Croucier is giving you solid info on finding an experienced and honest mortgage broker who can shop your exact scenario both ways, with the rehab and without and break down the benefits of each with all fees so you can see an apples to apples comparison. 

As a result, I would spend more time trying to understand who they are partnering with than anything else.  

When I was in your exact situation looking for help, they were the only ones that provided solid answers and walked my wife and I through the full transaction.

The new PM did initiate the transfer of service and reached out to the tenants, but since the existing PM hasn't confirmed the transfer to them, they're understandably suspicious. 

I understand this is a good way to become financially secure over time and am eager to start.  

Shenell, It's great to hear someone may actually understand what we're trying to accomplish.