While not shooting the idea down, he raised a number of possible concerns about future financing, such as possibly needing additional collateral or proof of other sources of income to justify repeated loans. 

I've heard people mention credit cards but I'm not a fan of the interest rates.I did, however, look up personal loans through companies like LendingClub that can do the lower amount I would need and the interest looks to be in the Hard Money range.

Why would a general contractor do the rehab work it requires to raise value before selling it at a higher price?

If they do not pay you will be forced to evict assuming your state regulations allow evictions based on utilities owed.Your best option is to simply raise the rent to cover the anticipated cost, plus some, and hope for the best.

There would be a $800 permit fee and they would raise the property tax 2.5 times for B&B and raise the tax 4 times for stand alone units. 

I have student loans around 40k but I am opposed to car payments and have zero credit cards. 

SFR rents can usually be raised faster than MF rents.2.  

Our other option was to raise the rent to have the tenants contributing to the estimated $4,000 annual heating bill.

2) we are raising money from family as well as some assetts i have already, how do we make it fair for 170g of borrowing.

Hello all,I am a Canadian Real estate investor and I have some experience at raising money for ventures in here in Ottawa but also for projects in Philadelphia.