Originally posted by @Tom Gimer:@Patrick MartoneIf you refi out of your HELOC, your line of credit will be closed and you will no longer have access to it.If you have a bunch of equity in the subject property, you could ask the bank to increase the line OR or you could get a new first and at the same time pay down and subordinate the HELOC.Hmm,  I'll have to double check, but the fine print mentioned something about getting up to 3 fixed-rate loans. it seems common across different institutions.

If these are just nail-size holes (since you mentioned "nail holes in the walls"), then that usually falls under normal wear and tear. 

In other words, I attempt to follow advice similar to what @Michele Fischer mentions above, You're goal is to be firm that any old pet can not be emotional to avoid fees, but you don't want be the next court case.

Do not confuse Business Start Up Expenses (the $5000 you mention) with the cost to renovate a property. 

Bottom line is not all that glamorous but pays the bills.I think your idea is great, it requires skill to put together a spec build, design, and sell, not to mention finding the right deal will also be a challenge, the good thing about it is there is less risk of the unforeseen factor aka surprise expense.

He is allowed to pay you up to $600 dollars for your labor without sending you a 1099.Did I mention I'm not an accountant? 

As a lot of others have mentioned, the multifamily has tightened up over the past couple years.  

A "negative cash flow" investment (that you'd likely be getting downtown) does not necessarily mean "bad", and a "positive cash flow" does not necessarily mean "good".Each property needs to be looked at on its own merits (and compared to similar sales nearby).Many hundreds of threads here on BP only give the specifics for a particular property, but with no mention at all about what other surrounding similar properties sold for.But Arthur, you won't do that, right?

According to income and liabilities mention above your DTI will be  high for new property in the range of $500k loan.

I would personally be a little leary of a lender who is trying to skirt around the requirements as it might make for difficulty in closing as @Jared Viernes mentioned.