Specifically if the JV contract makes you the new principal in the transaction?

Long before I started investing in real-estate, all my companies were created in Wyoming specifically because the Principals all had day jobs and wanted to keep our involvement on the DL.Additionally, the tax changes in Nevada have made Wyoming even more desirable.There are some risks with Delaware based companies that folks need to be aware of that can substantially raise the cost of doing business, so I would recommend working with a lawyer before setting one of those up.My real estate holding and leasing companies are all based in Wyoming, but that’s because all of my non-residence properties are located there (at the moment).When we close on out first property in Philadelphia we will probably be filing as a “foreign entity” in PA but waiting to hear back from the lawyers on that.

He explained of getting a HELOC on your house for x amount of money, using 95% of the heloc towards your principal and living off of the other 5% untill your heloc was paid and repeat the proccesss.

Additionally, which expenses should I include, if any.Another strategy would be to only include the principal paydown and initial investment, but not include any other expenses in the calculation [unless of course I house-hacked, which to me is a no-brainer to include in the calc].  

In addition to my principal loan amount of $75K, I paid about $3K in expenses between attorney fees, 2018 property taxes (because the borrower didn't pay the property taxes), and some other miscellaneous expenses.

There are 3 options: 1. detached ADU2. attached ADU 3. internal/conversion ADU that is located entirely within the 2800sf, making it  900 ADU and 1900 principal residenceWe were told that #1/#2 would cost around 350k and #3 around 250k. 

A simple example would be:Home appraised for $100,000 and you have a remaining principal balance of $50,000.$100,000 x 90% = $90,000$90,000 - $50,000 = $40,000 available for HELOC I did this on my primary residence and used the HELOC to pay cash for an investment property.

If she took that lump and put it right into the principal of the house.

The 6 months reserves relate to PITI only (Principal, interest, taxes, and insurance) and that will hopefully be considerably less than your total rents, assuming you purchased a cash flow positive property!

Borrowers are not allowed to complete any of the work themselves as sweat equity.Loan to Value Calculations:The original principal amount of the mortgage may not exceed Fannie Mae’s maximum allowable mortgage amount for a conventional first mortgage.