This is a very common issue in parts of Milwaukee and I have done lots of basement reinforcing on our rentals.

A common misconception is that you have to put down 20% of the purchase price.

@Kyle Trotman If you purchased with a hard money loan conventional lenders will require extensive seasoning to utilize the new appraised value for cash out. 

Utilizing a wrap he has a mortgage note as an asset to offset the mortgage he’s still responsible for on the property.  

You're marking the equities to most recent returns, the reality is a real estate investment to live in is a guaranteed rate of return and serves utility. 

Quote from @Jacob Sherman: you can utilize no income no doc construction loans . fund 50% of the land 100% of construction upto 65% ARV .

For example, most anywhere will get $700 room, $75 fixed rate utilities, $700 deposit, and then offer a 36 months, 12 month, or month to month lease ($350 fee if ending lease <90 days). 

We require a local veterinarianreport confirming the animal is healthy, properly vaccinated, and,require spay/neuter unless contraindicated by the veterinarian.Animal will be on a leash or in a carrier in common areas.

Or is it better to utilize different strategies?

Are there any red flags or common mistakes investors should avoid when reaching out?