When you look at the Pro's and Cons or a Heloc there are much more Cons...I would run the numbers on an actual cash out refinance even if you have a low first versus a 2nd lien and Heloc payment combined with 1st.  

My point was with the original poster, just because you see a home going to foreclosure sale, MOST of those homes do not actually go to sale at that time.

So with the right vetting, solid leases, and overall best practices, you can actually do really well. 

You could just hire him to build; the PM piece shouldn't be tied to the JV - they get the business if they do a good job and it should be equitable fee's for the area. 

We then incorporate their results into your tax return.2 - The price point is subjective, but it certainly can make sense for a $400-600k 4-plex if you're planning to keep it for a few years.3 - Most importantly - understand how cost seg actually works: https://www.biggerpockets.com/...

Basically, I don't want to just get the bare minimum I need for lender, but.I actually want to get something worthwhile if things go wrong

I'd get the 1099 corrected to show the actual interest that you distributed.

I own properties in the Midwest.Biggest piece of advice..

Lake City is a rural area where families will purchase a piece of land then put several mobile homes on it so they can be close together.

From there, narrow your results by checking out their services, costs, and many even provide report examples of actual inspections they've completed so you can know what to expect as a final product.