That occurs often and can be LOTS cheaper than an eviction process.

...my partner and I are new to REI ...or the "flipping" business (8 months) ...however ...not new to the rehabbing aspect ...having over 28+ yrs in the home building/rehabbing business (interior and exterior)...we are finding great properties ...to work on ...with great numbers ...and plenty of 1st position lenders to do so...OUR ISSUE is ...our reserves went into start up costs of the business ...now we are short ...and finding 2nd position lender ...or an actual PML to work with us in TN ...is not impossible ...but seems that way ...we have exhausted several avenues ...just looking for short term 6months-12months (preferred) ...and we can make monthly interest payments ...any suggestions for QUICK FUNDING would be greatly appreciated ...thanks for your time and consideration ...blessings                                                  ...Kelly                                                                

Small amount of asbestos needs to be removed from basement, hot water tanks needs to be exhausted properly.  

I've had one estimate so far and the guy said that he "exhaust motor" needs to be replaced.

This is more than an oddity to me - it makes the sink and the kitchen essentially dysfunctional.  

It requires a lot more than an apartment building investing, but it's something i enjoy doing. 

A joint venture with tenancy in common may not need to, as an example of different approaches.If his IRA is involved and there is debt financing such as a mortgage, you would need to ensure the debt is non recourse and consider the potential implications of UDFI taxation to his IRA.If a LLC is purchasing a property with a mortgage, and his IRA is a member of the LLC, or a JV partner with the LLC, the implications of debt could potentially be different for his IRA dependent upon how income is allocated.It is more complicated than an internet forum can address... but you are heading in the right direction and asking good questions.

I would not pay them any money up front other than an appraisal fee.The lenders you mention are not "private lenders" they are obviously professional lenders.

They're no more than an option to buy in essence.

That's far worse than an ARM loan, as new restrictions can even impact your ability to cash-out by selling to another investor as a  rental.