Can anyone direct me to a credible site for pre-licensing in real estate sales in NYS.Thanks,Irv

He currently has about $10,000 cash and about $20,000 in credit "Home Depot line of credit for materials."

Essentially your cost of money for the down payment is the after tax cost of debt...your home equity line interest rate after taxes versus the interest you are earning on your savings...I am guessing the cost of the equity line interest is more than what you are earning in the savings account...either way, I also suggest hiring a professional property manager to start with.  

It hasn't been a bed of roses however, I've failed, lost friends, lost time, shafted by countless contractors, lost and ran out of money, and a multitude of other problems, but what one hell of an Ride!!!

I get these lines of credit/ mortgages off my investment properties that are rented.

It definitely can impact the bottom line in an analysis. 

Also, it would be wise to get some credit lines just to have in case as well. 

It might be able to be done without even losing a bedroom, but even if it goes from 4 bed 2 bath to a unit with 2/1 and a 1/1 unit, the rental income (or sale price) should be higher than a 4/2 SFR in the area.That said I'm not sure if there's something I may be overlooking.It already has 2 exterior doors positioned nicely with separate porches and room to have cars parked on different sides of the house (it's on a street corner).I looked up the zoning regs for how the plot is classified and it is allowed by right (don't need to apply special allowances or rezoning) to have multi-family housing on the plot.The rehab would already have it gutted enough that the changes to plumbing and electrical would be easier.I don't have any idea how hard it is to get separate metering for water/gas/electric. 

It will most likely be a line of credit with a second lien deed of trust (2nd mortgage).

As far as the 203k itself goes, they are a great product, however they can be a nightmare if you don't have all your ducks lined up.