When dealing with local lenders, it might be easier for the lender to get comfortable with "outside-of-the-credit-box" situations given their intimate knowledge of the neighborhoods in your town, but when working with a national lender they tend to move faster and have more streamlined processes since they're lending tens or hundreds of millions a month across the country and specialize in real estate investment lending.What is your level of experience?

I know they are a bit different in business models but it looks like both companies do a good job of streamlining the buying process for out of state investors which intrigues me.

On a streamline 203K, that is the role of the homeowner, or general contractor if one is hired by the GC. 

But once the investor has been made whole (got his 70k back), then it shifts to a 50/50 profit slip.

While this wasn't a homerun deal but it met our profit margins and more importantly it developed our team and led to a better, more streamlined renovation process. 

Reinforce the inside of the garage to keep the walls from shifting out, and jack it from the rafters, or with beams through the windows and jack from the outside.

Choose your investment based on cash-flow and don't bank on appreciation and just keep plugging away until you find something (or shift your focus to a different market if that's easier). 

Hi @Haley Mistler I don't see how you could do seller financing.For the buyer, seller financing is very similar to bank financing except that the seller (you) is now the lender.You could have done seller financing if you owned the house free and clear.But considering you have a mortgage on the house, you can't really extend a secured loan to your family collateralized on the house without paying off your lender.Ultimately, it seems like you really want to help your family member while no longer having that house as a liability.I am not sure if you have looked at it, but if I were you, I would check with a mortgage broker if there is any way they could get a loan in their own name.I imagine rates have gone down since you bought it, so they could have lower monthly repayment and if they really cannot afford the down payment.Assuming that they have always paid their rent on time for the past years that you have had them tenant, the main concern would be coming up with a down payment.Ultimately, I see great benefits in shifting your liabilties and getting rid of that property and sellling it to them.Considering that the amount owed on the house is what it is worth now, you would saved real estate commissions by selling it to them.Those savings could be used towards their down payment maybe?

I would just be concerned that a market shift could easily cause someone to need to drop asking rent by 100 and there goes all of your cash flow and of course there aren't any guarantees of appreciation either, only a gurantee of a tenant paying down the principal on the loan. 

Does anyone know of or have experience with shifting value from land to the actual structure/building when closing on a property so you can depreciate more of your capital over the 27.5 years?