On top of that, the tip of the house (part of the back yard) was in a flood zone.

Local bank  financing at 1 point and 5.5 %this is a little street in a really cool area..

In my day when I did this we called those hypothecations.. and our bank would routinely loan 50% of our UPB.. and the hypothecation was done through the collateral assignment to the bank.and then when we moved into HML we have nice size credit lines for this we made a new origination and the bank took the collateral assignment as to 56% of ARV or appraisal.. that's how most of us HML did it pre 08.it was great we borrowed from the bank at 6 or so and lent out at 15 to 20 and made the delta..you get big enough lines and its pretty cool business. 

Again this is my first owner carry deal any insight, tips, or past experiences would help me out as I get started.

@Joe RuggieroNote my advice may not be the best Joe, heck i am a newbie in this world of multi family real estate with only 3 months of track record in this journey towards financial freedom, but maybe some of these tips would help (fingers crossed Joe)Try doing the following...

Couple tips: up front fee; too low interest rate, do not need your credit report or collateral.

Thanks for the tip on 203k!

To be done properly cost segregation must be done by a qualified construction engineer trained in the tax code as it pertains to depreciation.

They should know what your thoughts and feelings will be at the various stages of your training.

Any tips help!