This is a lot to contemplate.

What you are contemplating is very risky and I would advise not purchaisng real estate if you are reliant on a credit card.

I am contemplating removing the listing and finishing the basement to add two bedrooms and one bath, making it a five-bedroom three bath, and putting the listing back on the market.

Years of contemplating ways of making extra money outside of my day-to-day job.

And to my point, once the rules specifically disallowed the transaction THEN it was disallowed.The risk to someone contemplating an MIS transaction is that the IRS find that it violates some existing statute or rule, not a future ruling.This is what tax attorneys do.

Ive been contemplating on signing up.

:)  congrats on the new digs.. for me where I am contemplating getting back into sales as my building career winds down. ( my capital partner program continues of course) But that is, like you and very efficient . 

Ultimately the lender will require a personal guarantee from the borrower unless the property qualifies for non recourse financing (which is rare and generally applies to larger transactions than those contemplated or executed upon by BP forum posters).

Considering this constraint, I am contemplating an alternative approach: constructing a fourplex on a suitable piece of land.With a capital investment of 25%, I am curious about the financial viability of this strategy.

Put yourself in the shoes of the seller who is willing to offer seller financing or perhaps enter into a sub-to transaction which are  two commonly contemplated creative ways to structure transactions on BP.