I'm looking for a new lender for this HELOC product and I see this as the only solution if I'm going to keep my low-rate, first position mortgage intact.

Her idea at present is going to be to purchase the house herself (using traditional financing - high interest rate) and make the payment affordable for the family's rent to cover by arranging the sale well below market value and putting up a down payment of 30+ % of her own money, resulting in a PITI of ~1500.

If you give them $1M and you collect $100k in interest, that interest is taxed at ordinary income rates.

Thx Bruce, Sorry, not sure how the 2% interest rate idea snuck in there.

Everywhere in the country will be different with labor and material rates .

The higher your credit, the better rate you will receive on your loan.

Do you have a general idea of the interest rate on the HELOC either for your primary house of investment properties that you could get?

I just sold a duplex for $520,000 in four days, even though the current income is $1800/month and the market rate is only $3,000/month.

Seller financing does not always sell for more money and if there are big price declines then you may end up having to forecloseMy recommendation is to sell it with borrower getting traditional financing and put that $ in a tax friendlier account than loan interest = ordinary income rates

Generally there are three categories of multifamily investment properties – which will greatly determine your loan options.These three categories are based on the number of units at the property.2-4 Units: While these are “multifamily” properties in the sense that there are “multiple units” – you will generally have very similar options for financing to traditional residential loans on single family rentals – think the traditional 30-year fixed rate conventional option or DSCR Loans – and the coveted 20% down payment option too.