are you planning on keeping the private money loan for the long haul or are you going to refinance once rehabbed/rented?

I think what you have is a location issue and might very well have over improved it for the area.

@Beth Anderson, You can use a FHA 203k loan to wrap renovations into the loan.

The refinance will get our down payment back, along with the current mortgage and renovation loan paid off.

Contract for Deed | Texas Law HelpReason I ask is a contract for deed is a type of seller financing that the owner maintains title to the property until the loan is paid off.

However after running the cost it would be a 25yr loan of $33,000 at 5.99% and the monthly payment would be $150. 

Absolutely looking at other options (including direct booking) because want to keep learning, improving.

I did explain to them their options they had (such as sell it on the market, keep it and file BK, get a loan mod, and credit counselors out there who could potentially assist).

If an investment property, there non-warrantable DSCR loan options.Some details:Loans available for purchase, rate and term refinance (no cash out) and cash-out refinanceCredits score down to 620LTV are up to 75% for purchase and 70% for cash out.Rate buydown feature available.DSCR (lower of gross rent lease or Form 1007/216 rent divided by PITIA) as low as 1.0x.For experienced investors (one year of investor experience and own home), short term rentals can be structured off of 12 month short term rental history with 20% expense factor.

Whenever you apply for a loan, the credit reporting agencies will give your information out to solicitors.