It carries a $50k Heloc that’s being paid down. 3.

And arguing with SEC saying "oh yeah, I knew the rules and I illegally entered this investment, I shouldn't have been let in sooooo I get a gold star and all my $ back right?"

The "Gold-Rush Syndicators", yeah I see a LOT of trouble's there. 

Helps carrying costs while waitingg to sell and makes financials look better for investor buyers.

BUT for certain rural areas it's worth it's weight in gold because of the reliability factor vs an unreliable or expensive existing utility structure. 

Even if you are fine with carrying the high premiums during a flip, I think this really hurts your prospects on the sale.  

Quote from @Michael Izbotsky: @Ashish Acharya My SMLLC was created after we married, so couldn't that argument carry over that the LLC is "owned equally by both spouses"?

I find with ANY project on a property, PLANS are worth their weight in gold bc they will show the exact inches, ft, etc that the project entails.

The length of time you're carrying debt is a factor to consider. 

I run sum numbers for you please see comments below before refinancing and post refinancing .If I were in your position, I would approach it as follows:Initial Investment Assumptions: Market Value: $360,000 Purchase Price: $360,000 Equity: $0,000Financial Breakdown: Hard Money Loan (LTV 100%): $360,000 Interest Rate: 10% (30-Year Amortization) Monthly Payment: $1,995Upfront Costs: Origination fee (1%): $3,600 Closing Costs (3%): $10,800 Renovation Costs: $10,000 2 Month of Carrying Costs During Renovation: $5,390Total Upfront Required: $29,790Total Capital InvestmentPurchased price $360,000 Upfront Costs $29,790Total: $389,790To make this investment work, you need to rent the whole property for at least $3,165/month, refinance it let say after one year with 5% interest with a traditional mortgage.Year One Rent: Monthly Rent Income: $3,165 Monthly Rent Losses during renovations (2 Months): -$6,330 (-$527/month distributed over 12 months) Total Rent Income: $31,650 per year => $ 2,638 per monthMonthly Expenses: Hard Money Loan Payment (10% Interest): $1,995 / per month interest only Property Tax (Assuming $3,000/year): $250 per month Property Insurance (Assumption): $100 per month Utilities (Hydro, Gas, Water): $292 per month Assuming 0% Vacancy first year Assuming 0 % Repairs & Maintenance first year because unit has been recently renovated Total Monthly Expenses: $2,637Monthly Net Cash Flow: $1Post-Renovation Refinancing Strategy:So far, we’ve purchased the property, completed renovations, and rented it out.Next, you can approach the bank for a refinance to consolidate your initial investment of $29,790 plus your 360k debt into a mortgage.