Secondly, the homeowner would need to cooperate as she would need to submit a bunch of paperwork including income statements, tax returns, etc. for the Short Sale application to show that she is insolvent.  

Class C properties are considered the riskiest investment, but they can offer good cash-on-cash returns.

We did 20% down and were upwards of 15% COC return.

I bring to the table my full expertise in project management, construction, and deal sourcing, along with the knowledge I’ve gained working tirelessly in this industry over the past 3 years.My vision is to dedicate the next 10-15 years to real estate development, growing projects that generate significant returns while delivering exceptional results.If you’re interested in learning more, I’d love to discuss how we can collaborate.

The $1,500 net cash flow you mentioned represents a tightened rental return that could provide consistent passive income.

If he doesn't need the cash now, you could also negotiate a split you're comfortable with to get him the return you and he feel he should have at the point you refi when the balloon payment comes due. 

Even in HCOL areas, adding an ADU typically does not make sense because developing a single small unit is the most expensive residential development that exists.Adding an ADU is a lot of work (probably more than a brrrr but with worse return), has poor financing options, typically adds less value than the cost of the addition, and detracts something from the primary structure even if it is just yard and privacy.Good luck 

I did not start buying investments for another few years as I concentrated on building my sales funnel and getting those two years of tax returns done. 

Used your HELOC to fund the down payment on a second property if the right opportunity presents, otherwise those returns wouldn’t be juicy enough for me to take on more debt for the sake of scaling if you’re buying at retail. 

You need to understand how to drive the Net Operating Income to produce a good solid return.