I can fund the rehab and put a 2nd mortgage (with SAM) on the property instead of a JV.Benefit to you: you retain full ownership.Benefit to the lender: no liability of real estate ownership and I can foreclose if you don't pay

  - I would however, figure out what the property management rate is and then pay a maintenance person on retainer monthly slightly less then that.

I technically do not have to manage the property at all but they offered to have me shadow them to learn from this as well.we also discussed my getting an equity stake in the property ...say 60% and they retain 40% equity should there be a sale down the road or any HELOC or refi etc.also discussed were buy out terms should I want my initial cash out to move on etc.anyone ever have deals like this?

A conventional loan is not an option right now because my wife and I are relocating and underwriters view our business as starting from scratch even though we will retain a successful business in NY.  

If you're moving a mile down the road from a $350k to another $350k house and retaining your current home, this can raise red flags to an underwriter. 

Pay 3,000 upfront is a retainer.

I am so use to working in the other direction, I cannot recall of the US would tax the income in your hands as well (the IRSs approach to world-wide income is a little different than Canada's).If your company is a Canadian holding company, then having the company hold your share of the partnership would see the proceeds taxed in the company's hands (at the highest corporate tax rate) bout would allow the retained earnings to be retained in Canada or repatriated to your hands at your discretion.  

I can use conventional/FHA financing on the construction with one of the lenders I do business with so a large amount of the equity will be retained and would leave me enough to cover the balloon payment in 10 years.What does everyone else think?  

I think she was the victim of some shady dealings and would love to retain a lawyer to see if there is any recourse to this horror show of a mortgage she is shackled to.

This first venture of ours we plan to retain for cash flow but wanted to also reach out to hear anyone's thoughts on flipping in the Jacksonville area and if the current market is favorable to that type of venture.