Totally renovating the 2 family home into two condos.

Obviously there is a lot of factors left out of this (will bank approve, you name another etc) but just from a theoretical standpoint is what I proposed (using tenants $300K down payment as a down payment for my traditional loan) illegal or just not feasible and I've completely missed something here that more experienced people can explain to me when they are done having their chuckle.  

Be sure to also determine the total expense of foreclosing if she can't refinance in time.

Even though we have previously rented out two of our primary residents, with a whole host of ups and downs, going through this process has been totally new in so many ways.  

For a 5 bedroom, the total rent is estimated at about $2,434 median via rentometer.

View report*This link comes directly from our calculators, based on information input by the member who posted.

I'm leaving his name out at this point, on the off chance that he's legit, I don't want to be slandering him across the internet.If not already obvious, please be careful.

On top of that they are relatively easy to sell, where something like a multi family has a smaller buyer pool.So back to the details..Purchasing my first condo with $30k cash, then another $10k, puts me at $40k total investment, I rent out for $800 a month, after all my costs I'm looking at $450 cash flow per month.

I am taking a HELOC so I obviously do not have the cash lying around to pay it back in full. 

On top of that they are relatively easy to sell, where something like a multi family has a smaller buyer pool.So back to the details..Purchasing my first condo with $30k cash, then another $10k, puts me at $40k total investment, I rent out for $800 a month, after all my costs I'm looking at $450 cash flow per month.