The house is almost in foreclosure. it will be auctioned on June 5th. so i need to act swiftly.The owner owes 96k on the house, which is the Principal amount, but when i told her to call her bank for total loan payoff on the house. it was 105k.The house is ARV is worth 168k. doesn't need much repairs at all. about 5k repairs.do i have to factor in the total payoff, or just the pricipal owed on the house which is 96k?

Is there a HELOC type loan that will increase the amount you can barrow as you pay down your principal.

@Anthony Dadlani  well when I did this.I would make sure my note payment was higher than my payment on the borrowed funds so I made the delta.its pretty basic you borrowed 25k against your 50k note your 50k note pays off 45k since it paid down principal hopefully your 25k you borrowed your payments are set up to pay down some of that principal  so lets say the pay off to your underlying is 22k.. they get 22k you get 23k.. everyone keeps the payments they got during the term ... for some reason you don't pay your 25k note buyer they can then foreclose and wipe you out.. or if it bids higher than their 25k at trustee sale or sherrifs sale depending on mortgage state or deed of trust state.. anything over whats owed on the 25k goes to you as next in line.

Cash flow may not be as high but appreciation and principal pay down/equity build up is high due to the higher rents being collected.IT ALL DEPENDS ON YOUR PERSONAL STRATEGY!

You’ll have a little bit more principal pay down / equity in the property when it comes time to refinance your dad out.

On the other hand, by house hacking you may achieve the same living for free scenario or let’s say that you are $100-$200 out of pocket, but you will also benefit from principal pay down (you gain equity with each mortgage payment), tax breaks, inflation (each year your rent may increase, while your mortgage payment stays the same), and appreciation (maybe).

This is the primary reason we factor ROI into investing and why cash hoarders do not acknowledge ROI.You pay down a mortgage and the income it generates is equal to the prevailing mortgage interest rate plus the principal pay down, which you already get anyway.

I vote for getting your feet wet with a property your feel comfortable in, living rent free for a year while you update and pay down your principal and save money, and see where things stand then. 

If it appraises at much higher can you recoup your initial 25% down and just have a higher principal?

I don't think on HML there is principal and interest.