I also did a full cosmetic update of the sunroom and kitchen and am slowly working my way through the house to do the rest of the rooms as well.

Well the fact that this loan could not sell on the market for $37,000 has me believing that this property is not worth near $85k and not even at the $40k the seller is asking.

His wife and child may be moving as well in a few months. 

Hope others will recommend this as well and not put all the risk on the pref equity investors as well as us LP's invested in this fund.  

We have a portfolio of multi tenant flex industrial properties that have done very well for us, and consistently adding more assets.

I’m guessing I could use the heloc for those purposes as well ?

I told him well my lender does.

You won't need to take long to refinance as well.

showing how others have overcome basically every conceivable obstacle, just need to find the ones that work well for your specific situation.From the description you gave it sounds like a great place with some good family history, so it would be a bummer to have to sell.

All these providers have in-house PM and have already done major capex so I think I've minimized my risk as best as I can, but again this is as much about the education as anything else so I'm trying to keep that in mind.Anyway, I look forward to this experiment with excitement and I'm cautiously optimistic it will go well.