Is that pretty much like a HELOC? 

This could be happening to you as well. 

I was playing with the idea of selling my condo, taking 300k of the equity to put a down payment towards a house listed at 660k.I'm assuming the reno will run $300/sqft and going in with the assumption that phase 1 will run 750k (figure the expansion of the house will have to wait) for the gut reno.I assume/hope (but definitely not banking on) that I will be able to refi in 2-3 years at a lower interest rate; if not for a lower rate.This will likely be a family home for the next 5-10 years at LEAST so investment value isn't quite at top of mind ATM.Questions:Even if it's not for lower interest rate, do you feel it's advisable to refi to remove the 203 loan in the future?

New construction properties can qualify for significant insurance discounts, but otherwise, I generally expect insurance in this area to run a little over 1% of the property’s value if it’s in decent condition.Feel free to DM me if you’d like a good insurance contact to shop around for a better rate.

Approach it like an investment.

You should vet the company to ensure they have the resources to pay the rent.You ALWAYS do background checks on the people living in your property because if you let in an axe murderer and they harm someone, you are likely to get sued.Whether or not you charge an application fee is up to you.  

Very excited about how well they are doing.. they are not holding but I am helping them make 250 to 400k in cash a year or more by financing thier deals for them.

It's not a direct answer to your question, but it's very likely you have no contractual leg to stand on.

Its a 3bd/1.5 bath row home Either the rehab sucks and the house looks like crap, or, you overpriced it.

This coming weekend we were thinking of come out and checking the neighborhoods of few zips where there were houses we liked on MLS.