If this is done, then 75% of the gross rent for your current primary can be used to offset the mortgage debt of that property to 0.

•Would the $70K+ cash from flipping significantly impact your financial situation right now?

I'm also an IU grad and hit financial independence last year (after 18 years of investing and saving).

.🔴 Incomplete or disorganized documentation: Missing detailed plans, financial statements, or timelines could mean the borrower isn’t ready to execute the project successfully.🔴 Over-leveraged finances: Borrowers with excessive debt or insufficient personal capital invested in the deal could pose a greater risk of default.🔴 Questionable property comps: Overstated market values or inappropriate comparables may mean they’re inflating expectations.As always, thorough due diligence is your best protection.

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

In this case the current financials on the property aren't great(rents well below market value and the owners family living in several of the suites) so the lenders will likely not provide the funding based on poor NOI.  

Highlight efforts to minimize displacement, such as offering lease renewals or supporting affordable housing initiatives, and share data to clarify financial realities.

That’s why I alway recommend Jimmy Napier’s “invest in debt” book.  

Notably, there is often an unfortunate cycle where: (1) current ownership has financial struggles; (2) this requires the current ownership to fire sell or declare bankruptcy; (3) the development suffers as a result; (4) new ownership comes in and tries to fix it; and (5) the cycle repeats.

For my commercial properties, I refinance every five years, allowing me to continuously access the equity as long as the cash flow can support the debt service requirements.