The line has $275 million of capacity, down from its original size of $1.55 billion.Write to Peter Grant at [email protected]

You need to buy, rehab, rent, manage, refinance if the numbers make sense, don't if they don't, repeat if you identify the right property and if you have the capacity to properly manage, and maintain external sources of cashflow to really get it going. 

At $3 million the borrower probably could have continued making payments, but the additional monthly carry was beyond their capacity to service.

As long as you are cash flowing or have the capacity to stick it out in the higher interest rate market buying at a lower price is always a win.

That's where you might find information about "distance to substation" and "capacity".

It doesn't quite remind me of 2004-2008 since the borrowers need to have a history of paying their bills on time and provide evidence of the capacity to repay the debt, for investment properties lenders are requiring anywhere rom 10-25% down depending on the loan amount and documentation. 

In your proposed situation, here is what I would do:1) Make sure you have a good/solid/reliable contractor that can actually do the work and has capacity to handle the project.2) Apply for the max HELOC and get it established. 

I think we all have the capacity to drill down and to find the answers to every one of the questions you asked and to educate ourselves about the process.

SEM works, BUT it’s become very expensive, and now requires expertise beyond the capacity of the average business owner/investor.  

From the people I personally know living in some of these new apartments, they are almost at full capacity.