If you will be living there, you should adjust your monthly gross income to reflect that. 

I paying 7500 on a 78k property.  2500 of which is a loan level pricing adjustment which is something dictated by fannie mae. 

If you are talking to the tenant direct and you make any adjustments, expect to be dealing direct on any further issues they don't like the answer of.

There are things that they would be entitled to in terms of a price adjustment (in your example, if lumber prices skyrocketed for a specific reason beyond his control then usually the owner is on the hook, however, there are measures to limit this exposure).A contract can be drafted using the scope of work, estimate, and schedule (you can include liquidated damages - this is a sum (not a penalty) of what it would cost you if the project is not completed on time - think daily rent and storage rates). 

The interest rate can adjust on a HELOC so it is better used for shorter term debt like a flip or a BRRR.Home Equity Loans are installment debts that you pay a fixed amount on what you are loaned, and you must begin repaying it immediately.

Originally posted by @Bob Okenwa:You'd have to refinance the loan in the name of your LLC, and that loan would be a commercial loan with inferior terms (shorter amortization, higher interest) than a standard 30-year mortgage.I don't mind the interest adjustment, Does the LLC need to prove itself able to sustain the payment of the loan?

From the IRS website https://www.irs.gov/taxtopics/tc511"If you're a member of the National Guard or military reserve, you may be able to claim a deduction for unreimbursed travel expenses paid in connection with the performance of services as a reservist that reduces your adjusted gross income rather than an itemized deduction on Form 1040, Schedule A.

Hi Michael,Without knowing much about your current script/approach it's tough to give any insight on how to adjust; however, in my experience, which resulted in my first deal (2-family in Quincy, Massachusetts) the conversation had flow because the seller and I were able to connect on a personal level prior to any negotiations regarding the property. 

Buyers then bought at the edge of their income and when rates adjusted higher the mortgage became more then they could bear.

I filed an insurance claim for the water/mold, still spent $8,000 on repairing items the adjuster stated were not part of the original call (another lesson learned).