Hello All,  Im looking for an alternative to the standard practice.  A debt structure for SFR that's valued by cap rate as opposed to individual appraisal.Im open to speculative conversations but here is the scenario....

Equity in a deal is important as well, so they will look at that across your portfolio potentially if you are using your other buildings to show income or use them as collateral. 

If the foreclosure occurred a long time ago, the foreclosed debt doesn't have collateral and therefore the debt should be unsecured?

The subdivision goes from 150k to 1 million in price.If your friend owns other properties that are trophies I would definitely cross-collateralize some or all of his other properties and get a personal guarantee.

Acquire the land through a seller-financed deal for the deed to the land and use it for collateral to cover the 20% down payment needed for the construction loan. 

She knows us so well that she will personally lend to me without any collateral.

Asking for 6 properties as collateral?

As a collateral, I need to add his name in the title so that I pay off the amount when I am selling the property. 

The RE used as collateral are either SFH, multi-fam, or small commercial (like a small retail store), and all in Calif. 

So you cannot use that property as collateral for a loan. 2) Again, the house is not your name anymore so there are no depreciation benefits.3) From my understanding (and I'm not a tax guy so double check this with someone who is) is that your taxable income would be calculated based on the capital gains over and above your initial purchase/capital improvements and recaptured depreciation (for a SFR, the property, not land, depreciates 1/27.5th each year) but the amount you lend back would not be taxable until you receive that income.