You are dealing with discretionary spending from your customer base vs necessity spending with an LTR.  

There must be a way to send a private message on this website, we can chat through that or you are free to call me. 

It can be done but I would probably also diversify it in private lending or another type and just not NPN's.I think reality people need to understand is the days of 25%+ returns are only happening if the operator is on top of their game but stuff is being sold and priced out at 15-20% and that should be the expectation.

I wouldn't use all of the funds on the down payment and closing costs but keep some of it to get the rehab started, as most private lenders will give you funds for the rehab after part of that rehab is done.

However, all private sector jobs are temporary.

Building new construction would turn it into an investment property, limiting the exclusion to $250,000 and increasing the tax burden, reducing overall profit.Way to keep the exclusion and still keep the property is to sell this to a privately owned S-corp.

Initially, I was planning for a quick sale and contacted my private money lender for a hard money loan.

Of course, there are a lot of things to look out for...setting up an appropriate contingency reserve for unexpecteds, getting an accurate scope of work, properly knowing what your time-value-of-money costs are going to be, making sure you're contractor is not pulling crews for other customers, knowing codes and getting your permitting right, and the list goes on.

Far too many variables- I’m wrapping up a garage conversion adu right now for a customer and the permitting process was a bear.

DSCR loans are loans issued by private lenders with proprietary and differentiated rules and guidelines and are typically included in “non-QM” securitizations.The advantage of conventional refinance loans is that they typically have the lowest interest rates and fees.