Then the business portion of what you're paying is deductible.Example: your family plan is $400/mo, and you're one of the 4 people on the plan, so you contribute $100 towards the bill.

Put it in writing that after any contributions to the project are deducted by either party you split the profits 50/50.

They have suggested that I contribute my equity as the down payment for the construction loan.So, if we were to take $400k cash in against $1.2m, my loan would be $800k and LTV would be 67%. 

You can request in the purchase contract that the seller contributes money at close.

Were the any remodels in which pipes, electric, windows or other contributing factors were repaired/replaced?

Or, if you are already in the closing process, you can contribute out-of-pocket cash into the closing to cover the non-permissible expenses.  

Thank you all so much for what you have contributed. 

In effect the mortgage the lender is giving you is cash that is used to pay the seller and of course you're contributing the down payment. 

Max seller contribution on an investment property is 2% regardless of down payment. 

BRRR your next home- might as well let uncle sam contribute to your retirement via the housing allowance.