There are many HMLs that will finance new construction, but much of it is based on your experience, credit score, and the expected sale price.

Over time your property value will continue to go up, which you cash out on the sale.3.

Make it a discussion to see what they want/need from the sale. 

Purchase price: $115,000 Cash invested: $42,000 Sale price: $168,000 Unfortunately, we bought this property as a buy and hold property, and our research led us to believe that this neighborhood was up and coming not in a bad area of Jacksonville.

but if i go in a LLC with them i get hit with the tax from the sale of the homeThe GC and the flipper were just going to split the profits from the sale of the home and they were going to pay me 2%/12% for the duration of the build. 

You can’t only 1031 your portion of the LLC’s sale of the property. 

I forgot to mention another sales tactic is to tell people at the three day class you can charge your investors the 40k tuition.

You also have to check out your current lenders MAX CLTV rules because it may cause issues with the first DSCR lenders original note/agreement.There are some lenders that have CLTV rules or will not allow a 2nd lien if it does not confirm with their Max CLTV similar to a 'Due on sale" clause.

Like you a purchased my primary residence in 2017 as an estate sale and landed an amazing deal which still holds a large amount of equity.

The sales price was $14k under the asking price.