I get a DSCR loan on the property and we try to suck out as much money as we can to leverage the property at 75% of the ARV.

Even after one year, that property may provide thousands of dollars worth of appreciation, you will pay down your loan and build some equity, and you can depreciate the asset. 

It’s because having cash available doesn’t not necessarily mean the borrower has the credit CAPACITY to obtain a loan.  

The terms for a 2nd position loan on a rental is 6%, 25 year term,  and 2 points origination fee.  

The deal will leave the seller at your sons mercy for decades (the life of the loan).

.⚠️ Financing Challenges: Hard money loans carry high interest rates that nibble into the bottom line.Unrealistic timelines: If you think you're going to be in and out in 60 days, you're sadly mistaken-most flips take longer than expected.Real Talk: Is Fix and Flip Still Worth It?

Check with your lender first—they may allow it if you personally guarantee the loan.2.

Using the 203k or now the HomeStyle loan you can buy a fixer upper and get all the money to renovate. 

This money gets added onto the back of the loan kind of like a VA funding fee does. 

This is really a lot of information packed into a densely worded post.Yes, you can use loan proceeds to buy out another member, but it doesn't seem like you'll have enough to buy out and develop.