@Jaskanwal Preet Singh ChhabraRefinancing a converted property for coliving involves appraisal, loan types, interest rate reduction, and careful planning.

HI Patrick, you can go up to 90% CLTV for HELOC primary or 89.9% for cash out refi but rates can be a bit higher depending how you use those funds for a better ROI.

Thanks @Nick Belsky, What kind of rates have you been seeing?

This seems like a lot of work to save 15% of $35k in taxes (Less than $5k.) especially if you have transfer taxes or title insurance, or you convert your long term 15% rate in to your son’s regular income tax bracket.I hate paying taxes as much as the next guy but this lemon isn’t worth squeezing.

This is when you buy a primary residence (1 to 4 units, the more the better) which you can usually get for a very low down payment and get the best interest rates on and then rent out other units and/or bedrooms within your unit to pay for the mortgage and other expenses.

A rate of 8.5% for DSCR cash out refinance seems a bit high..

- get into real estate with a lower rate and lesser percentage down payment.

This type of loan typically has lower interest rates since it poses less risk to the lender.Non-Recourse Loans: Conversely, non-recourse loans limit the lender's ability to collect from the borrower beyond the collateral pledged for the loan.

And then when rates started going up, the buying stopped and the building stopped.

The unfortunate thing here is that investment properties foreclose at a higher rate than primary homes so many banks just don't want the exposure to this.