In the end, the net profit to myself would be higher using a loan versus giving up an equity split, and less complicated.

Hi John,No cap on the amount of DSCR loans you can get.

@Ashish Acharya I have found that I get better terms for personal loans. 

I got a rehab loan for a flip from a friend for 9%, no draws, and got all the cash upfront to finish the project.

Is it smart to take out a 40 year loan to get some cash flow?  

For calculating IRR, use the total cost of acquisition—this would be the mortgage balance plus the 50% buyout equity and any closing costs.Regarding refinancing, assuming the loan under the Garn-St.

My personal home loan has a mortgage balance remaining of 157,000 and it's currently worth 550,000.

If you can make a conventional loan work, it’s likely a better option.

@Charlotte WilsonAs long as you continue to occupy the property you purchase with an FHA loan and you're not applying for owner occupant financing on the other property, that shouldn't be a problem.

these are construction loans