Your initial posts sounds like you are renting this home on your own without Real Estate Agent assistance. 

bet that borrower had more than a 700 fico and 30k in the bank LOLhorizontal loans are pretty tough there are a few that will do these..OP  I don't know what you think astronomical rates are . your never going to get bank rates unless you borrow from a bank ..

I'm a realtor in Indiana and would love to assist!

My dad and i have a private lender for a house we are remodeling next door to our house. we could move next door into the house we are remodeling and rent the current house we live in(without rent to own). then use the rent money to pay the private lender for the money we will need to borrow for the subdivision. 

@Shamoon Siddiqui At times depending on investor guidelines and borrower showing imminent default a short sale may still be possible while a borrower is current. 

The answer to this will vary on any given day depending on the deal, the borrower and the bank's needs at that time. 

So you are really borrowing $176,000.All that said because if the After Repair Value is $220,000, then 75% would be $165,000. 

NPV is the current value of all future cashflows discounted to the WACC ( weighted average cost of capital,  or the interest rate that you borrow at).

I don't reside in  Florida(but visit often) so I'd need the assistance of   a credible realtor or  savy investor to iron out the details . 

She's a top producer and can assist you, if you don't use Ian.