How will appraisals work if the property is not even close to move-in ready?!

If the property is in service (advertised for rent), you can maximize the de minimis safe harbor rules which is where the $2,500 per invoice or per item comes into play.

What is the type of deal you are doing?

You can compare the numbers but the biggest factor here by far is you'd have to partner with someone which causes orders of magnitude more complexities.

You are on the right track @Tom E..

If you need more guidance, DM me, and I’ll point you in the right direction!

I enquired about the HELOC on the rental property and I am not getting good terms that work out.

I have been considering asking to buy the single family in cash to separate the deal but would like that amount to be subtracted from the purchase price while keeping the cash I would spend on the down payment the same to include the single family that way the seller gets the same amount of cash upfront.

It's not the cost of the big ticket items that kills your budget, it's the loooong list of small tasks and receipts!

Welcome to the community, Nate!