What's at risk is it may not cash flow and renting is not so common in South Jersey, but I would feel more comfortable investing in a good area where schools are decent to good, and tenants are likely to care more.

@Christina Colon   So you have a guy you use every two weeks to take care of the front lawn anyway.

By carefully balancing the collateral and ensuring rigorous underwriting standards, it is possible to mitigate potential downsides while capturing the upside potential, providing a compelling investment proposition in a competitive market.Uses of Mezzanine Debt CapitalMezzanine debt can be deployed effectively in several ways, including:- Liquidity Provision: Providing liquidity to set aside interest reserves for first lien lenders and tax and insurance escrows required by the first lender.- Property Improvements: Funding additional property improvements such as renovations, HVAC work etc.- Operating Shortfall Coverage: Addressing operational shortfalls during challenging periods.Objectives of Mezzanine DebtThe primary objectives when using mezzanine debt include:- Project Stabilization: Completing renovations, construction, or improvements and then stabilizing the property with 90%+ occupancy.- Interest Rate Management: Buying time until interest rates normalize or decline.

You'll need to be very careful with your renovation budget and timeline.Your renovation estimate of $120k-$150k seems reasonable for adding a bathroom, redoing the kitchen and existing bathroom, closing in the garage port, and doing cosmetic updates.

Be careful of the Fair Housing Act and discriminating against them. 

@Steve Meyers join the FB group Metro Detroit Real estate investors to find contractors.Just be careful...

They've been slow about getting issues taken care of, like setting up lawn mowing for my two duplexes.So in summary, financially it is what they are promising, but it's a mess.   

Kind of like raising earthworms or Ostriches for skin care oil.  

The last time I saw a structure like this, it ended up being a scam from a very well known real estate mogul...Be careful, if it sounds to be good to be true, it probably is...Cheers!

You have to be careful in Canada.