Underestimating the time commitment necessary for successFunny how the more complicated, higher risk, and more knowledge required to succeed in a Particular aspect of real estate the easier and simpler the gurus make it sound.

It sounds like she has violated several standard lease terms, right?

Hey Aaron,If the goal is to use the HELOC as a down payment for a DSCR loan, you will also need to factor the Prepayment penalty when you decide to cash out on the new appraised value after all renovations are completed. 

Those who have successful partnerships often stress the need for complete transparency and clear communication from the outset.

this sounds like a perfect option for me sell a 10k option for a year with set price I can buy the option out at.

It sounds like I am not in a situation where it would make sense.

Property: HereComp: Here (Sold on 8/1/2022 same street)84 Grangerford Hts, West Henrietta, NY 14586Listed : 100kHML at 80% of ARV (240k) = 192kInterest only payments (10% interest)(192k x .10) /12 = $1,600/monthPoints = 2 (192k x .02) = $3,840Loan origination fee's = $1,000Additional monthly holding costs:- Taxes (5k/12) = $416- Insurance = $60- RGE = $120Total monthly = $596Duration of rehab = 6 monthsInterest only ($1,600 x 6) = $9,600Points = $3,840Origination = $1,000Holding costs ($596 x 6) = $3,576Total Holding costs = $18,016Loan amount of 192k:Subtract:- Purchase price = 100k- Closing costs (4%) = $4,000- Rehab = $50,000Totaling = $154,000Remaining balance on loan= $38,000Sale at $240,000:(-) (Realtor fee's (6%), closing costs (4%)) = $24,000(+) $38,000 Remaining from HML(-) Holding costs ($192,000 + $18,016) = $210,016Profit ($240,000 + $24,000 + $38,000 - $210,016) = $43,984 - (capital gains at 22% completely estimated) = $34,308Buy and hold:Appraised at $240,000.

Keep in mind you will also likey be paying transfer taxes on assessed value of the property in order to complete the transfer even if transferred for a $1 or a "nominal amount".

Given the complex nature of investments and personal finance, I want to make sure I'm making informed decisions right from the start.From what I understand, a fiduciary financial advisor is someone legally obligated to put my interests ahead of their own, which sounds reassuring.

Hey Casey, Sounds like you have funding for the initial purchase, however need help with the exit strategy and possibly the rehab costs.