Marie Johnson - please see this link where what you proposed in your post seemed to occur for somebody:http://www.patheos.com/blogs/slacktivist/2012/11/13/rolling-jubilee-proclaim-liberty-throughout-all-the-land/

Then to be safe, I like to add 10% to it as a buffer when/if cost overruns occur.

They can change terms basically at anytime before closing for non-owner occupied - is it good for the reputation - absolutely not - but it does occur.

So right now is a chance to nicely position yourself when this occurs. 

I'm paid fairly quickly, at the time the assignment occurs.- go through all the above motions, but this time I don't assign the lease and option to the tenant-buyer.

OR Talk with a property management team that specializes in Padsplit / Co-living and they can give you some more realistic numbers to go with when it comes to occurancy % and cost!

Especially if you haven't went into detail about how you want things to occur and what the project schedule is.

They're good to have open access to capital/cash/equity to a property ahead of time so you can execute a deal or purchase when the time comes on a split second decision (versus having to apply to a loan at that time which might take 20-45 days to get approved/closed/etc plus by that time you dont know what your future income/credit/assets will be like in order to qualify anyway).The second use is sleep at night factor and having a reserve of capital in the event an emergency event occurs in life.For these two reasons is why I use lines of credit.

Overall, it sounds like this whole thing stemmed from a communication or integrity issue that occurred at the loan officer level.

On the $650k we financed and “wrapped” we earn the 6% differential every year - or $39,000 (declining as amortization occurs).