I'd love to hear how people make these projects work as I want to help provide more affordable housing for the markets in our area in the Twin Cities, Duluth, and the Brainerd Lakes Area. 

If there is no problem then the HELOC will provide more flexibility since the cash out re-fi may yield more proceeds after improvements when applying the 70 or 80% LTV limit whereas you might get improvement proceeds from an investment loan but you won't want to because there will be a lot of red tape, inspections, draws, lien waiver compliance and a lot of other crap they load onto improvement loans on investment property.

Hi @Leslie Monroy Bloomfield works, we have some huge rents in  locations close to the transit lines.   

I know it is a capital improvement and needs to be depreciated - which makes me think to claim it in 2023 when the work was done, but since we didn't pay it until 2024 - that seems wrong. 

I've been in the hard/private money space working as an originator for coming up on 6 years now. 

I've spent the last 18 months working a side gig to deal with that and am proud that I've been able to pay off over $50k in personal debt without any bankruptcy, liens, or lawsuits.

No one has the "right" answer.

Talk to a company that works with investors.Frankly, I would hesitate to sell the property.  

All are personally owned with insurance, but no LLCs or other legal structure.

Most DSCR lenders are usually going to want to see more equity contributed directly from the borrower, however there are some shorter term options that might work for you.