Thanks allIf it was for a fix and flip I would say do it but for a BRRR it would depend on whether you think you are adding that much value - as whether you are borrowing from a LOC or getting a loan for a new purchase - you are still borrowing money.

Many lenders will deduct 5% so if the maximum for the borrower's credit profile is 80% LTV, the lender will only lend 75% for a short term rental. 

Also there could be a good chance the borrower files BK if they are still alive.

Established borrowers are not paying interest of loans that have matured and WE the investors have our money stuck doing nothing.  

If there is little to no equity, the borrower may not be able to sell the property on the open market because it would require cash at closing. 3.

The more you show on your paystubs, the more lenders will approve you to borrow and the faster your savings will grow.  

I also recommend you provide two sets for signature, so that both borrower and lender get signed originals.2.

My goals would be to increase monthly cash flow and have more access to the property's equity for things like Cap Ex, etc....Here's a blurb from a lender's website:"By combining banking functionality with home financing into one dynamic instrument, borrowers are able to save tens of thousands of dollars and years off their loan""Designed after popular programs around the world, the All In One First Lien HELOC is the nation’s first transactional offset type-mortgage program.Home financing and banking combined:Deposits lower your loan’s principalFunds remain available for expensesInterest is calculated on the average daily balanceThis lowers the monthly interest paymentsTens of thousands of dollars can be saved over the life of the loanMortgage freedom can be achieved in half the time or less

You'd be borrowing a slightly higher amount but your monthly debt service could drop by a few $100s. i.e.

I work with a lender that allows that as long as we can document some explanation that the borrower doesnt plan on occupying the home as a primary residence.