I'm looking at it from a "minimize expenses" perspective in order to get into the game and learn (hopefully break even)  then build from there as I've been looking for well over a year now.To complicate matters, I'm also looking for private funding to make it happen so if you're able to go the normal route, more power to you!

The conversion amount will be considered taxable income and you'll have to pay taxes on it.

I am trying to remain as professional as I can be just didn't know how to react or what to say when I got their e-mail.My husband thinks it's their way of trying to get out of the lease, but they didn't not mention anything about wanting to move in the conversation I had with them.I guess we will cross that bridge if moving out is brought up.

After some thinking, I was initially wanting to sponsor a real estate investment deal via private capital funding.

Also, seek out a Private Lender who might do a loan for you at a cheaper interest rate and give you at least 12 months . 

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Are private money loans from friends typically "secured" by something?

Now that you're locking in on deal number two, have you thought about seeking private lending from persons in your network (e.g. family, friends, mentors, etc.)?   

Recently I have found a good private money source and I have started doing flips. 

None of which I, as a private investor looking for properties to buy, am doing.