I'd recommend starting with the lower hanging fruit than a large basement reno - if your comps are close but don't quite get you to your number.Finishing the basement (with proper egress) could push you over the top, but confirm with an appraiser first to ensure it counts.

Private lenders generally have fewer restrictions, a faster process, and can structure loans based on the property’s value rather than just personal income. 

I personally have found an abundance of deals where older landlords no longer wish to own but do not want to pay the capital gains tax. 

Personally never heard of this scheme or way to set up transactions. 

He knew the person selling this property and asked if we were interested.

Instead of being discouraged by a property that doesn’t quite meet your needs, why not see it as a chance to personalize and add value right from the start?

I both personally invest in real estate and help others gets started/expand their portfolios in various Midwest/midsouth markets.What I do with my kids: My wife and I have 2 of our rentals that are on the same street, with a home in between them.

I would build a relationship with the person before you decide to partner.

An LLC shields personal assets from business liabilities, while S-Corp taxation allows you to reduce self-employment taxes by taking a reasonable salary and distributing remaining profits as distributions, which aren’t subject to payroll taxes.

Quote from @Leonard La Rocca III: So is it common to find a conventional loan without meeting the lender in-person?