Personal guarantees are EXTREMELY common.

Hey Denny - For rehab costs, a good place to start is breaking things down room by room and getting rough estimates for common repairs like the roof, HVAC, kitchen, light cosmetics, etc.

I also advertise before someone moves out to get a new tenant before the current one leaves. 100% occupancy on a LTR is very common for me.No idea on a MTR.

These LOCs are typically interest only and adjustable rate, which of course is planned for, again with the equity and the cash flow of the investment, it shouldnt be a problem to at the very least break even, even in the worst of scenarios.

And I know that a refinance would be the best, and most common, way to go. 

In your scenario you'd have a potential tax event on that $200K difference.Here's a creative way to access most of that money tax free however. 

Your clients should focus on properties with significant equity potential and work with experienced contractors to stay within budget and timeline—especially with borrowed funds on the line.Avoiding Bad Deals - Encourage them to work with experienced agents, contractors, or mentors and always run multiple scenarios, including worst-case outcomes, to stress-test their numbers.Reserves - Advise your clients to keep a reserve fund separate from their loan for emergencies, unexpected expenses, or delays.

FlooringScope of Work:Replace carpet in bedrooms with engineered hardwoodRefinish existing hardwood floors in common areasInstall durable tile in wet areas (bathrooms, laundry room)Estimated Cost: $20,0004.

It’s not very common but I have seen this done before.

And with much more in commonality with starting and running say a restaurant.