Eliminate debt, establish a budget, and save.

I am currently paying off all my debt to allocate money into the rehab.

I always think installment loans (like hard money) is better than revolving credit debt.

The Note is the debt (evidence of it, technically).

You receive the piti from your buyer and you then pay the underlying debt with that payment.

If you are going to lock in that debt and let it sit, it's not wise.

But if the debt is say 50% of value - what’s the chance of the property not “covering” the debt  and your personal guarantee being enacted? 

I am in my early 30s, zero debt, Excellent credit and currently live in Minnesota (hoping to move to another state in a year or so.). 

You cannot take cash out of the property when doing a HomeStyle Renovation loan or pay off other debt.

Value $900,000; $600,000 debt, $200,000 basis; 7% sales commission, only him- mother is deceased- $250,000 cap gain tax free, $70,000 sales concessions or repairs, capital gain tax on $550,000 less costs,  etc etc.  2 out of 5 year rule, can he live in other buildings?