Another factor the look at is DTI (debt to income) https://www.credit.com/calculators/dti/If you go FHA you must live there for 1 year.

You may be able to find a smaller local/regional portfolio lender that might do it but I'll bet good money you won't get anywhere trying this with like BofA or Wells Fargo and the like.If you are going to try to pay off all the private financing it is much more realistic.

By the end of the year we will have an attractive, fully remodeled 5-plex in a decent area close to the University, shops, hospital, etc..Preliminary calculating the commercial value as a function of the NOI and assuming a 10 cap we would seem to have gained a decent amount of equity - if we do not occupy the 2BR.

I bet if you posts the address on this thread you would have the perfect rent confirmed for the house within 24 hours.

A "Flip Transaction" will require 2 appraisals (only 1 can be paid for by the borrower), and the lower of the 2 is used for calculating LTV.

Know the calculations cold and buy whatever pops up that makes sense (SF, MF, etc).

Hard to answer this without knowing any of your numbers but a rough way to calculate would be to take your projected profit and give me an additional % that corresponds to a fair hourly rate for the time and expertise he will be putting into managing the project.

This sounds to me like a normal deal in lots of the "up and coming" dc neighborhoods like Columbia Heights (full disclosure this is where my house is), H st, Adams Morgan (although I think we can all agree adams morgan is never going to actually get out of the up and coming phase), etc.TL;DR I would bet this is legit.

If all of that is okay then move on to your calculations which are missing expenses.

@Toni Fowler Your best bet is to start attending some local investment club meetings to network, learn, and ask questions about the market from folks that know it well.