From a trend perspective it looks like a trailing end of a Sellers Market, but while that is a trend every single property has its own story and there are deals to be had.The idea as a textbook exercise is sound - but will succeed or fail depending on the tenant and success you have with the renovation.1.

It sounds like a good exercise for you, so hoping to see the figures. 

Screening will play a huge role in how the House Hack works, and I would be very careful in renting to friends of yours. 

Jack as we age this becomes a real exercise.. for me its all about paid for assets. and limiting long term liablities.and well I jsut dont particularly care for the rental business in the SFR space.I prefer buying debt. or originating debt.. or doing value add like new construction.. 

It may sound rudimentary but role play works wonders.

Also a small possibilities the first lien holder would allow you to step into the borrowers shoes and make loan payments.All this is probably an academic exercise because if a property with an uncompleted rehab has a second lien in place of the required equity, there would be no equity for the second lien holder to worry about. 99% chance with a second in this type situation there is no equity above the first until rehab is complete, despite what the flipper wants you to believe.

If the people bringing the money don't have an ongoing active role in the deal, it is a syndication.

14 Unit Multi-Family - AZ3 Parcels6 BuildingsMostly new roofs100% Occupied and consistently at 100% over the last 25+ YearsAll Units 2 Bed / 1 BathIndividually Metered for ElectricComplex Water, Sewer and Trash / $800/Month Average4 Units have new a/c with heat pump10 Units have old A/CCurrent rent roles:1 Free Unit to Manager3 Units at $600/Month10 Units at $800/ MonthNeighborhood supports higher rents after new HVAC on older units and other improvementsAsking: $1,350,000

Perhaps we can try your exercise too.

Admittedly, I haven't gotten to "exploring commercial lending options" part of this exercise, so not sure how realistic is a 6.5% commercial rate.