We look to rehab all of our properties based on what the local market can support and then hold the property (passive income) or sell the property (generate capital) depending on how we think the property fits in our portfolio best. 

If signs look positive, then we will probably proceed to get an architect/engineer involved to do drawings and pay for the permits.

So I'm not sure if it fits into the picture in any way.  

Investing can be very stressful so why have the other stress involved.

:@Mike M.What do you use to get all of the details of the transaction down before the lawyer gets involved to draft up the final documents?

@Paul Boyett I second what @John Warren said, you can use these equity in a variety of ways, depending on your interest and interest to be involved as a landlord.

@Tanya Rooney  Some Hard Money Lenders require you to put at least 25% down and the ones that do 100% will have a lot of fees involved and points.

That being said, I am also being warned to stay completely away from being involved in the transaction because any association with my own personal real estate (bought outside of conventional mortgages) is in violation of FINRA's rules.Has anyone run into this before or know anyone who has their licenses and still invests in real estate without using conventional mortgages?

How will retirees fit in?

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.