started the interest rate at 8.5% and wrote in the contract that their interest rate will change anytime my bank loan's changes (every 5 years) and will always remain 2.5 interest points above...for what it's worth...i have another under contract that hopefully will close soon..i'd be interested in hearing about this wally wrap as well bryan...what was that?

Once the rehab was done I refinanced out of the private loan into a conventional loan as a primary residence.

If you are going to be an owner-occupant, want a low down payment, and are planning to do a renovation, the FHA 203k and Fannie May Homestyle loans are your best optionsHow do you know the property is currently upside down on the mortgage? 

I'm a Realtor with a couple properties listed in Boise, ID and a neighboring town for my investor/client that are currently rented as co-living or rent-by-the-room and getting killer income. (7.3% - 9.5% Cap rate) So far, every inquiry has been baffled by the concept of co-living or rent-by-the-room and immediately ask if they're being run as a halfway-house (which they are not).

Quote from @Jarrod Ochsenbein: I purchased an existing Padsplit with a DSCR loan. 

I ran my own custom proforma for a bank loan using the asking price that would generate a cap rate over 10% and CoC just under 20%.

My in-laws loaned us the total purchase price minus $5,000 on a 3% interest rate.

I did trying to do one subject to loan an my real estate investor didn't know much about it. 

Get a 50% LTV loan and buy another property just like the one you own. 

@Jordyn Ohs pay off/down your Heloc aggressively and/or look into DSCR loans for future acquisitions.