LoL, they were all wiped out of course.

Of course, what they paid isn’t going to take into account the money they have spent on renovations or remodeling, which can be substantial.  

Believe in yourself and stay the course.

Yeah of course!

I've worked with tenants in a similar fashion and ended up feeling ok about it but it was short term, over the course of a few months and they paid me something the entire time. 

Twice now over the course of a year I had it happen to me.

Would love cash flow, of course, but if I could at least break even on a highly appreciating property, I'd be happy with that. 

And of course we're in agreement on consulting a tax pro.

Your local ADU specialists will know other lenders who will do construction loans but probably at higher % & points. 

Our privately owned and centrally controlled monetary system, known as the Federal Reserve, and the legality of Fractional Reserve Banking is on a crash course for a battle between Freedom (Property Owners) and Royalty (the banks).