For a 203k loan, you’ll want to target areas that have properties needing work but also a strong potential for appreciation after rehab.

Memphis has been an amazing market for BRRRR due to its affordable property prices, strong rental demand, and solid cash flow potential.Would love to hop on a call and go over your questions—let me know when you’re available!

They lie and they commit fraud. 

When considering single-family homes (SFH) or small multifamily properties, it’s important to analyze rental demand, local property values, and rental rates to ensure you’re getting strong cash flow potential.

Here are some financing options to consider:HELOC or Cash-Out Refi on Another Property – If you or your mom have equity elsewhere, this could be a more flexible and lower-interest option.Business Line of Credit – Since the property is in an LLC, you might qualify for a business LOC, which could cover construction costs.Private Money Lender – If you’re okay with 12-15% rates, a private lender could fund this as a short-term loan, especially if the guesthouse will generate strong income.Construction Loan – Some lenders offer short-term construction financing, which converts to a longer-term mortgage once completed.Seller/Partner Financing – Bringing in an investor or structuring a joint venture with someone willing to fund the build in exchange for a share of the income.Credit Card Stacking or Unsecured Business Loans – Riskier but could work if you need to bridge a gap until the unit starts cash flowing.Would love to hear more details—especially your timeline and expected rental income.

Future flips should focus on negotiating better deals and ensuring a strong after-repair value (ARV).

Hey Hazel feel free to PM me, I have a strong referral network and would be happy to connect you.

Or, at least a contractual commitment from him that we can revisit the share allocation based based on the depreciation recapture based on when, and how much, we sell the property for. 

Too many people doing the same thing doesn't land strong results.

Hey John, if your priority is security paying off the mortgage in 5-6 years would give you a solid $4K/month net.Alternatively, you could use the HELOC to acquire a few rentals, likely in out of state cash flow markets with strong price to rent ratio.