He has likely been paying a hefty percentage of his monthly payment to interest over the past ten years and is only now starting to see the scales tip in favor or the principal vice interest.

Hi,When you are using either method, you would do yourself a big favor by using the actual values, and not what you are thinking is an "intrinsic value."

A HELOC from equity in another property is likely your cheapest option to borrow the funds unless you have some cash value life insurance with favorable terms on borrowing from the cash value in the policy.In the HELOC you will have payments during the rehab but your total borrowing costs will be low relative to other options like hard money.Also you should consider hiring out the most time consuming work. $40K in 4 months may be better than $45K in 8 months.

I would either have to use a HELOC, or some sort of favorable conventional loan and maybe find a way to get out of PMI.

You might also find an investor willing to make this kind of guarantee as well, if they know the market well enough, and owe you a favor (or if you compensate them a bit).

Don't know about your meeting, but I will say;Better not tear down the entire building or you'll be building under new construction requirements, rehabs are generally more favorable.

I'm not surprised by that, but shopping around with other lenders might reveal more favorable reserve requirements.3.

Just curious...but haven't the subject-to deals fallen out of favor because banks are more regularly enforcing the due on sale clause?

I'm wondering if I leave the house in the business name if that would work out in my favor any.Probably going to have to make a new company, and that's fine, just wondering if anyone sees potential in saving some money somehow.

Personally I would favor a fixer upper, provided the floor plan wasn't horrible.