Plus the mortgage company probably calls the loan, and if you can't pay it off then you can lose the property.

The friend who shared this deal with us offered to provide the loan.

The money borrowed from your equity comes with interest, then you have the new mortgage with interest.

Quote from @Jaycee Greene: Hey Jaycee, we currently lend on several loan types: Fix & Flip up to 90% LTP, BRRRR, New Construction, Bridge Loans, & Multi-Family.For myself personally, I'm looking in the Orlando, Philadelphia, and Southern NJ markets, 1-4 units.

Quote from @Vince Scipione: Standard would be an FHA loan for your situation more than likely.

in what I just laid out, you'd make monthly payments to the seller just like you would to a bank for 5 years, and then the remaining principal balance of the loan would be due, at which time presumably you would refinance the house into a commercial mortgage and use the proceeds to pay off the seller. 

For a 203k loan, you’ll want to target areas that have properties needing work but also a strong potential for appreciation after rehab.

5% Downpayment on a Conventional Loan How did you add value to the deal?

FHA loan with 5% down, plus a seller credit of $8k How did you add value to the deal?

Had equity but couldn't access it.