How should I proceed?

Now I have an owner who has had had 2 fire insurance cancellations.

I'm trying up predict the upset price on the foreclosure auction of a VA insured loan in Georgia and am not sure if I'm off base in my calculations.

@Monisha Nabar One model to consider is the passive investor who brings the money gets all of the net rental cash flow until their initial capital is returned and then the split goes to 50/50 for remaining cash flow and sales proceeds

Seller still owns the property and the JV agreement outlines how I put up the remodeling expense and then at the sale he gets X out of it (whatever our agreed price is) and I receive Y out of it (proceeds above seller's agreed price?)

@Mario Gonzalez it should be to pay Taxes, Insurance, and the monthly MI

Keep all the other expenses in mind like taxes, insurance, vacancies, pmi, etc...

Make sure you have ample liability insurance whatever you choose.

The law changed how mortgage debt is treated based on how loan proceeds are used.Home equity debt which is taken out to pay for things other than making substantial improvements to the home (which improve the basis of the home) is no longer tax deductible, as it is not considered acquisition indebtedness.

You could also sell one and use the proceeds for the other rehab.