You legally don’t have a foot to stand on

I would not take on debt for the flip and the flip would have to work as a rental that you could refi and cash flow. 

I'm just trying to understand the general situation, not looking for legal advice or an answer in a specific situation at this point. - standard disclaimers about questions apply.Thanks very much.sw

What is the debt ratio that they derived?

Just know your basics and what you can and can’t do legally and your good.

You held onto your property, and even though it took 10 years for the value to come back for you...you also have 10 years of debt reduction during that time.

Seems unlogical to take a property that I paid for at the bottom of the market and then take the equity and buy at the top of the market, but if I can own multiple properties or do something else with it then maybe the higher debt amount doesn't matter? 

You pay a local licensed contractor wIth a good reputatIon to accompany you for a second look .have him look over all the structure and systems etc.. have him do quick quotes on issues he sees on a legal pad as he’s walking through each room have him check the wiring the roof the furnace the plumbing .

I know some states require a broker's license to be able to legally manage properties owned by other people. 

The question is would this be a legal use, as long as I have proper documentation, or would this be seen as intermingling funds?