I'm looking to learn more about passive real estate investing, syndications, and other passive or semi-passive streams of income or equity building.

Then get photos and get third party verification that everything was done right prior to making your final payment to the contractor.

I kept the house for 5 years and finally called and requested the Chief Building Inpector.

A final and general question - is this house worth it?

Unused contingency funds, unless they were received directly from the borrower, must be used to reduce the outstanding balance of the renovation mortgage after all of the renovation work has been completed and the certification of completion has been obtained.The loan is not re-amortized.Draw Schedule:The HomeStyle program has a maximum 4 draw process.The initial draw can be up to 50% of the total project and can be for materials for the project.The final draw will be at least 10% of the total project as retainage and funds will be released upon receipt and approval of final inspection, Certificate of Completion from Appraiser, signed All Bills Paid Affidavits and Lien Waivers.Additional Draw Information:Ø Signed Draw Request by borrower and contractorØ Signed All Bills Paid AffidavitØ GMG review and approve the draw request and will release funds for disbursementØ A check will be issued in the name of the borrower and contractor and delivered to borrower via USPSØ An inspection of work to date will be performed at 50% completeFinal Draw Information:Ø Signed Draw RequestØ Final inspection/Completion Certificate will be required for release of final fundsØ A Title Update showing property free from lien or encumbranceØ General Contractor’s Lien Waiver AffidavitØ Affidavit of Completion GR will review and approve the draw request and will release a check in the name of the borrower and contractor.Change Orders and Cost Overruns:Changes to the initial plan are not permitted unless prior approval by Guaranteed Rate.

It took 3 years, but,  I finally navigated the permitting process and now have all the permits I need to build 6 small cabins on a river in the mountains.

Not sure the final outcome, but I'm guessing that is a case where you think things are risk free, but I expect the purchaser was out significant legal fees that were not reimbursed and ended up not getting the property.I've always thought about this in the rare instance that a super nice and super valuable property goes to sale with a mortgage on it. 

We are looking forward to finally being able to move forward in a positive direction with cash flow and equity. 

I get excited when new investors finally figure this out because their first deal then becomes a matter of when.

It's worth looking at a blended rate calculator before you make a final decision of the type of loan as it will show the new "blended rate" of your HELOC and first mortgage if you go that route.