They clearly had no intention of paying off the loan in October but sought instead to further reduce their loan balance during a time of the note holder's personal hardship.

If you get in with a locked in company that's in it for the long haul, your success and being taken care of are gonna be pretty high. 

Also in many areas prices are very high.

It's 400 sqft and high end finishes.

I assume it’s not high enough that you or any family members want to take on the job?

Some hard money lenders lend at pretty high LTVs, leaving little equity buffer to protect your principal.

Earthquake fault zones, flood plains, and high fire hazard areas are off-limits.

Is refinancing not an option in your mind because of the high pre-payment penalty?

to be clear - lots of other issues, lots of other challenges, and BRRRR is difficult right now with interest rates so high. 

@Emily Gowen so as you pointed out you would not have to do a 1031 exchange on your current home to avoid the capital gains tax and coupled with what Dave Foster pointed out I think, speaking from experience you would have a high likelihood of success.