We are currently still living in and working on the house. and were blessed with our first child last Christmas which slowed down remodeling a bit but has also opened our eyes even more to this amazing opportunity.

Gold standard here is a 30 year fixed rate conventional mortgage (Fannie Mae or Freddie Mac products).

I dont see that causing a big up tick in defaults. plus the buyers were much more qualified.I can see it on teh commerical side though .. with those that bought cash flow that only works at X and now they go to refi and its Y .. as they had 20 due in 5 loans.. i can see saw pain there. did not read the article but I will .. but wanted to comment on why i dont see a big spike in defaults being tied to interest rates.. i see sales slowing.. and such.. but not a direct line to defaults.

Obviously, you would not do this if you did not have a good backyard.Market research indicates that renovations, and subsequently, "indoor/outdoor living", are very popular right now.For a personal perspective, would it be worth it to put these types of products in a Class B home, in a Class A or Class B neighborhood?

If I can jump through all the hoops.. my debt to income ratio is on my side, its very low. income tax season is here, so that will help me out. one issue is; my work has been slow the past couple months, only working 2-3 days a week. but we are finally picking up and should be busy for a while, my YTD income/income over the past 2 years has not been very good due to having 4 surgeries(work out injuries).... although I was collecting short term disability all 10 months off work. hopefully the bank see's how much money I make a week now and everything works out, wish me luck BP FAMILY :) 

@Patrick Flanagan  You need to refinance it into a conventional product. 

None of this is meant to be "braggadocious", my current success is a product of the effort I've put in (i.e. not a trust fund baby; congrats to anyone who is, seriously).

Many members are experts in their respective fields related to real estate investing, whether that is real estate brokerage, wholesaling, flipping, buy and hold, lending, self-directed IRA and Solo 401k investing, or tax and legal guidance.There are some pretty cool discounts on various products and services offered as Perks to BP members that you might want to check out: https://www.biggerpockets.com/perks/proIf you haven’t checked it out already, the Bigger Pockets blog features links to their awesome podcast and many great articles: https://www.biggerpockets.com/renewsblog/

The property sounds ideal to short term rent (AirBnB), if Huntington Beach allowed.Additionally the local market is cooling off and shifting to a more balanced market, which will slow down your appreciation. 

A lot of commercial loan products don't source the funds, you just need to put them into a bank account so they can verify it's in there.