OR hyperinflation to print and borrow to make debt servicing on that debt. 

Would the buyers/borrowers be purchasing with the intent of putting a mobile home on the property and making it their primary residence?

Hi Angus, A cash-out refinance is typically not considered a taxable event for businesses since the borrowed funds are regarded as liabilities owed to the lender.

Many real estate investors opt for a fix-and-flip loan because they’re relatively easy to obtain: no personal income verification (no DTI requirements), and you can often borrow up to 90% of the purchase price and 100% of the rehab costs.

You could also get a line of credit for about $150k (you should be able to borrow 75% of the value.)The reason I suggest this is…1) you save $40-$60k in selling costs. 2) you have a lower blended interest rate (2/3rds at 3.25% and 1/3rd at 7 or 8% instead of the whole $500k at 7 or 8%) saving you another $1k/mo in interest. 3) you only pay interest on that $150k when you actually use it, not from day 1  Unless you hate this property, or want to buy something you can’t afford without selling, that would be my plan.

You would actually be borrowing less money than originally but at a higher rate.   

You can contribute more compared to a SEP IRA, avoid the UDFI tax on leveraged real estate, and even borrow up to $50,000 for other needs.

Ability to repay - can you as the borrower afford the payments based on the loan amount.Typically they will not take into consideration the mortgage on a new property that has not been taken out as that is new.

I found ways to borrow the cash and did 5 cash out refis within 7 years to recycle the equity to scale up.

Hard money and DSCR loans generally do not vet the borrower enough to meet these regulations.