As I am already 50% owner, I do not believe it will affect me (correct me if I am wrong) but what about my fiance who will essentially gain a property in this way. 

I would get all the paperwork you can from the lender and confirm what you can do with a lawyer. 

Hi @Kenny Dahill, while I'm not an attorney, accountant, etc... the paperwork that I have seen for my specific situation has not said that at all.

I pay someone to cut it once a month so we essentially alternate and it’s cut every 2 weeks.

In this case your gain is going to be much higher than how much cash you get- since essentially you accessed that cash early via a mortgage and heloc. 

There is less paperwork, no up-front PMI, and monthly PMI will drop off once you hit 80% LTV.

If you have a way to fast track doing the paperwork etc you definitely are bright indeed.

They saw the property today and we are putting the paperwork together.The $20,000 is about 8.7% down on $230,000 - you take the sales price and subtract the down so $230,000 - $20,000 leaves $210,000 mortgage with a payment of $1650.

He sent over a generic NREIG packet PDF about the policy and said the cost would be about $60/month.Regardless, when I asked for paperwork and forms for me to evaluate and sign, he said "No paperwork; no forms.

Essentially, I don't see a huge migration to the suburbs when all indicators and trends show cities are where the action are.