IMO if you chose #1 now you can always choose options #2 or #4 six months(maybe a year) down the road, pull all your 60K back out plus what ever appreciation you have(if any) and move forward. to me in option #3 you said paying interest bothers you and option 1 solves that problem, gives you practice with a new tenant so if they don't pay or u have problems you don't have 2 bills( your old mortgage and your new mortgage) to manage along with the stress(of kicking out your friend and finding a new tenant) just the one mortgage that your fiance already has within his budget(because your 60K didnt' factor into bank financing so you found a home to move to that was within his budget alone(even more safety net) or at least lower mortgage payment and house than if you had 60K to use to buy-down another home. but i digress....Option #1 is less stress , less interest payments,and less of your money with 2 options left over at a later date. like joe said your 60K is safely locked away in the home(minus depreciation) which you can always pull out later on when you are more risk-prove.Still your choice but that my point of view.Good luck!

Well, strictly from a practical perspective, paying hard money rates is likely to be cheaper than the alternatives. 

Now some of that CAPEX was elective to improve the property and increase rents, but still I can assure everyone that CAPEX is very real and is probably is over 10% of rents over time.

If anyone is in the Franklin country area in Mass please reach out I would love to talk about investment opportunities, practice looking at housing deal, or other general advise of reaching financial independence.Thank you all!

Three practical disciplines for being rigorous in people decisions- when in doubt don't hire, keep looking- When you know you need to make people change, act.

Since the property is in the family is it possible to do seller financing and still get a 203k loan for the improvements?

If you are interested in getting into wholesaling, you should discuss your plan with a wholesale-savvy attorney and get informed on how to do so in such a way as to mitigate risks of violating the B&P code as much as possible.Also, legalities aside, soliciting to anyone that already has an agent listing their house for sale is basically asking their agent to file a complaint against you for practicing without a license. 

Hello Everyone, I just want to say that I appreciate any friendly help that is sent my way in advance!My partner and I are just starting out with getting into real estate, and we feel that we should take some steps to...

With a $229,000 Market Value the all-in is $171,750.As you stated it will be hard to force enough appreciation (with minimum cosmetic improvements) to get you out of the FHA loan and still get cash back.  

I’m realizing I should perhaps pay cash on a rehab in a decent location, put in the improvements before refinancing and moving on.