Speculators use these highly leveraged instruments to make bets.

Agreed J Scott, and I bet what the appraiser will say is that the comps used were most similar to the subject.

As soon as the property is rehabbed can i refinance it?

Now if you're asking him to go in on stuff with you, then all bets are off.

Seconds can be made by the municipality eco. dev. dept.You can bet that NPs will take the lion's share of CDBG funds and HUD allocations but private parties also have access in your economic development zones.Probably the easiest way to tie gov. funds with private money is simply to piggy back the financing.

I am open to any suggestions on wether to consolidate and refinance...

You can refinance the home then buy a new rental property.

Depending on your market area and cash reserves private funding may be your best bet overall to extend your reach.

I know they use it for lending under Harp and other programs used to refinance.

In the event you can not refinance him out for some reason.