Hey Seth, Any update on the final portion of your appeal? 

Selling @ $500kLender providing $490kCan the remaining $10k be carried by seller?If so, should it be a separate contract? Should it be outside of current escrow? Should the $10k loan be a lien on the house?

@Ryan RuncheyThe bookkeeping for this specific property will likely be difficult.This appears to be a househack as you purchased a personal residence but also have roommates to help with the rent.As a result, a portion of the expenses as they relate to the house are personal in nature and non-deductible.Items such as real estate taxes, mortgage interest, etc are all pro-rated.On-top of that you are doing the BRRRR which indicates that there is rehab involved.Portions of a rehab are currently deductible, capitalized or non-deductibleCurrently deductible - payment for an area of the home that is a tenant area.

This reduces the need to have so much dry powder upfront as you will be reusing the money over and over again ideally.All things considered, I prefer a flexible Home Equity Line of Credit with interest only payments on the portion that I use rather than making principal and interest payments on an amount of money that I may not need right away as I make investment choices over time.

While this initial policy allowed me to secure conventional financing, I'm now in the process of planning and executing renovations to enhance the value and appeal of my home, with the goal of switching to a different insurance policy after completing the remodel and being refunded the unused portion of the escrow.

Those amenities probably will only appeal to a small portion of the renters.

I highly recommend Appfolio just simply because the tenant interface portion of the software is super easy to use and it has a built-in messaging system that makes communication so much easier!

Combine the pressure on returns with a significant portion of the labor force leaving certain industries during the pandemic and not returning and you've got massive upward pressure on prices. 

The lender selection is vital to a successful 203k and they area also required to select the 203k Consultant.

FRL would imply that portions of (9/10ths?)