The only obstacle is that you still need to take the actions to get it as a SFR if you intend to use conventional lending to get the property in the first place.

There is very little distressed inventory and anything at even reasonable prices has many offers.

I'm not 100% sure on this, but I think if it is owner occupied you can go with conventional financing for as little as 5% down.

But at least you could get your money back out relatively quickly.Long term, you could always refi that commercial loan back into a conventional loan if you want.

And, if the RE guy flips the property and moves on to the next on, that is better and may serve as a construction company, but the rehab guys usually don't work as often or produce the benefits of a factory assembly line.All said, RE is on the bottom of rungs of the ladder in a way as investors tend to go with RE cycles, seasonal work, inventory fluctuations, it's just never been a steady employer like a drug store or lumber yard or small factory.

So basically what I am wondering is: 1) Could I go to the bank with everything I have said here and seek a conventional loan with her co-signing against her property in the form of a home equity?

Anyways, in scanning the inventory of parking spots in Boston it appears that a few spots could produce a small cash flow.

Stop thinking 20-30% down and conventional financing.

Cash out refi sounds like conventional financing to me and that is when people start to get into trouble.

I have checked with banks and credit unions but they all follow fha guidelines for conventional loans as well.