Also, will turning the home into a full rental property influence my goal to get a second mortgage, or will they only factor in my debt to income?

When and how do you "release" a private mortgage with a payoff from a buyer?

Basically we were dealing with lady x at this big mortgage bank working out the details, who was gonna  pay for closing costs and if i could put repair money into the deal and then all the sudden lady x cant be contacted  for a month and i thought the deal was done and i was back to square one then my realtor got word they had reduced the price again out of nowhere.

He left us with his home with a mortgage of 156k on a house worth 190k.

This will allow us to sell our current home and then move into the mortgage free home and sell (or rent) our primary home.Since we are hands on do-it-yourself investors we cant continue until one is done. 

A friend of mine's father passed away after selling the house to a reverse mortgage company. 

Noble Mortgage.

If you aspire to have rental properties you might like the financial benefits of keeping your existing house as a rental when you buy your next primary residence, if that's an option for you.Primary residence home mortgages have a lower interest rate than investment mortgages traditionally, so by buying your next primary residence and hanging on to your old one, you get to keep your lower interest rate on both properties.

We would like to finance the construction costs of $130k but end up with a 20 yr/20% down conventional "2nd home" mortgage.

Here is the summary of my situation that requires creative thought:Location: DC Suburbs (Clifton, VA)Original sale price: $300KOriginal mortgage: $240K ($60K down)Money spent rehabbing property since 2008: $70KTotal cash invested: $130KCurrent sale price (based on comps): $430KAmount owed on mortgage: $208KPotential cash generated from sale: $($222K, not including transfer costs)Estimated Monthly Rent: $2,200Current Monthly Payment for M/T/I: $1,300 *Biggest yard and likely one of the most updated homes in a desirable community where "average days to sell" is less than 14.Now the issues:Need $100K-$150K out of the house (or via investment) in order to put down-payment on next home, which will be primary residence (probably a $600K home).I've plugged numbers into every rent-or-sell calculator out there, but always feel like I'm missing something big.