So I’m looking to borrow $40k for 2 years, and am willing to use accident settlement as promissory note, or property purchase lean or both if necessary.

In syndication / CF - Is there a way for someone to borrow using the title of the property underlying the business?

The reason is that any amount of cash you take or any amount you purchase less than you sell the IRS determines is taking profit (either cash direct or with borrowing less).  

If you're planning to sink $30,000 in rehab costs into the property up-front, I'm guessing it won't qualify for a conventional loan right away, and that you'll need to initially borrow from a hard-money / portfolio / private lender at a (much) higher interest rate, and then refinance once the property qualifies for a conventional loan.Lastly, nice job being thorough in your expense itemizations. 

3% to 5% down works great because the less money you put down, the higher your overall returns will be (not to mention the appreciation rate on the property will be the same regardless of the amount borrowed).

There likely is a clause dealing with the passing of the borrower.

Most lenders will be at 70% - 75% LTV with the loan amount being capped at the borrower's/investor's cost basis for the first 3-6 months (varies by lender) and potentially an unrestricted 70% - 75% LTV on appraised value after the 6 month mark.

Yes, taxes will eat some of it, but not that much, considering depreciation, 20% QBI deduction and no self-employment tax.Can you increase your cash flow by borrowing against these properties?

I am not looking for funding; I am interested in learning more about the specific documents used when making HML’s and any checklists used when vetting a borrower/deal?

Here's info on her: https://www.mountainwestbank.com/personal/borrowing/kelly-kingsford