It looks like the seller bought the house for $8500 in 2012 (and then realized he had taken on more than he could handle) so I'm guessing that there is a little more give on the price.Is this one that I should run away from as quickly as possible or is there enough skin in the game to make it a worthwhile proposition - perhaps as a flip?

HELOCs can give you flexibility so you don't want to keep them hilted, you want to use cash flow to pay it down at a regular schedule so you have additional emergency reserves or the ability to deploy it elsewhere.So in summary, with little displine, HELOCs can lead folks to make a bad deal happen or end up with more leverage than is healthy or long term debt.  

You have a healthy approach to this and still have a job you can lean on in the short term.

With prices so low and on the rise, it is an active and healthy market. 

There are several different ways to skin a cat.When buying from banks, yes they do not like assignments, but there are a few strategies to get around that. 

.+ High overview numbers:- Land acquisition: ~$2M- Soft cost: $600k- Construction cost: $2M-$2.25M- Sale price: $7.2M- Closing costs: $850K- Net return: $6.35M - ($4.6M-$4.85M) = $1.75M-$1.5M==> %of return: ~30-35%His office wants to structure as follow, roughly:+ Partnership structure:- Broker firm (owner of project): up to 50%- Max 6 partners, preferably less- Min to enter: $500K- Min for project to start: $1.5M from partners other than the broker firm.I would be both investing and building the project to have my skin in the game.  

I do 50/50 deals with one at a time, and put up some of my share, and borrow some of my share from the other investor, with a healthy yield..

What is the LTV with your investment, how much skin does the rehabber have in the game?

That way my score stays healthy and I am able to get awesome perks wherever I go.

Also, my wife and I will tackle this new venture together, so if anyone has any suggestions on how we approach this to maintain a healthy relationship, please feel feel to post them.