Also throwing this in the discussion for any visitors who are looking for creative solutions-- Jim, if you get the note reperforming, you could hypothecate it by using it to collateralize a loan or just sell off a partial of the modified loan for a return of capital.

Single Room Occupancy (SRO) or PadSplit / CoLiving are able to make a ton of income, especially if you modify the house with a couple extra bedrooms. 

You may still have to deal with a lender for acquisition and construction and then modify your loan assuming your dealing with a local bank. 

The activity is essentially no longer subject to the passive activity rules, so even if your modified AGI exceeds $150,000, you can take the suspended losses in year of sale.

Some lenders modify their seasoning requirements according to how you bought the house.For example, if you bought the home with cash, then most lenders will require 6 months or even 1 year seasoning.On the other hand, if you bought the property via a loan (and thus went through a formal underwriting and appraisal process) then a few lenders offer as little as 90-days seasoning in such cases. 

I know as the Lender, I always have the option to modify things but the NoD helps set the stage if the borrower doesn't act or respond in a way I feel is beneficial to getting the project across the finish line and me my capital back.     

Proc. 2000-37, 2000-2 C.B. 308, modified by Rev.

How would the refinancing of the modified property work in the future?

Hi, I bought my first commercial NNN property in South Carolina in 2023. My husband and I own purchased with 2 friends. The 2 friends did not want to create an LLC with all 3 partners prior to purchasing because they ...

A fair amount to agree upon although I foresee a few major looming modifiers that I predict have a high degree of likelihood in happening that have strong influence in adjusting markets. - The correlation of erosion to buyers purchasing power in monthly mortgage payment (increased property tax's, property insurance, HOA fee's) is a factor I see counter acting a slowly declining interest rate, making for a ~net-0 market activity environment on YOY volume metric. - Leading into home stretch of POTUS election cycle, the above may be a strong catalyst to press the deployment of a stimulus offering in form of home buyer empowerment