@Gina Smith,You are considered to be disqualified person to your 401k, all transactions involving your 401k must be arms length, meaning that you personally can’t be involved.

Rates and fees are typically much higher than conventional mortgages, usually ranging between 8 and 15% depending on the loan amount and term length.

When I post on Craigslist I typically have a description around 2x the length of this response with the maximum number of photos allowed.

You Can NOT buy it as a short sale, as you are her son (it wouldn't be an arm's length transaction), period, end of story.

If the do charge do they guarantee the tenant staye for any length of time.

Having spoken at length to my partner, the contractor, realtor, and you kind folks, I am clearer about the cost (building in coastal Charleston is more expensive than other areas, for a few reasons) and timing (we are a little thin on profit on this project, so in an effort to save some money, we have the contractor working at 10% and he is not going to be able to get his subs to "step on it" if we are trying to pinch pennies).

All of the work must be done with approved contractors who are an "arms length" away from the transaction, and for the 203K full (anything structural or over $35,000 in repairs) a HUD consultant must be used.If you have any other questions I'd be happy to help you out, and if you want I can connect you with someone in your area who specializes in renovation loans.

Additionally, because you are in cohesion with your neighbor this is no longer an Arm's Length Transaction.To truly qualify for an investor loan, you will need reserves and capacity to cover the debt of both homes since the subject property is not rented.

The idea of a contingent contract with a modest length inspection period is a good one and takes you from bird dog to wholesaler.

@Jason Atkins I am assuming you are taking out maximum length for the terms of the LOC, then using the rented units to pay for the subsequent payments, that should be fine, but as @Joe Gore stated, if you arent intending on paying anything that would have sever consequences.