Most people in this biz get knocked for a terminal loop when they borrow against their home to do what you are proposing to do.

Be prepared for feedback on your deal and JV proposal, too. 

But that could be delayed under a proposal being considered in Raleigh.A draft of the DOT’s new State Transportation Improvement Program (STIP) proposes pushing the work back a couple of years.

Hey Account Closed,Good feedback, it's more of an initial pitch and then if a potential investor shows interest we would go back with a more specific proposal and deal to actually fund.On the personal guarantee, I think that's probably the way we will have to do it until we can show an actual track record.  

Maybe propose to help them find  a rental and pay for a few months of rent in exchange and money to boot if there is significant equity.

In that case I would propose to only buy this house for no more than $120,000 still not at $174,000.

Which do you propose?

Things like ST3 and and the community hubs that the mayor is proposing.

If not, you could always state "To be discussed" and let prospective tenants propose the terms to gauge the market (however the obvious risk is that your friend gives way too generous concessions for the market based on a few initial offers by prospective tenants).Disclaimer: This is from my experience in the New York City metropolitan area and the market in your area could be significantly different.

The other consideration I would think about when the conversation of leverage comes up is the equity you have in the property with the additional proposed leverage and cash flow of that asset with that much leverage.