The profit will be evenly divided between 4 partners.

I removed the wall that divided the kitchen and the living room to create an open concept kitchen.

That would make me uncomfortable as it would seem they aren’t as “big” as you might think and the slightest road block where more money is needed could be them demanding it from investors to even continue construction.Now don’t get me wrong I put together draw packages all the time where we do draws along the construction time line and each party puts in money to pay for construction as it moves along but these are huge projects and a different animal.All I am saying is there would be lots of questions in my head as to why they wouldn’t want to use escrow and IF they needed my funds to actually break ground or not.

Take all of your current debt and future PITI payments, and divide that by your income. 

Purchase price: $210,000 Divided the lot that our previous home was located on using HPR.

The loan will be simple interest and there will be multiple draws.

Your monthly payment (PITI+mortgage insurance) divided your rental income cannot be greater than 100%.

Whereas going right to option A is guaranteed to put you in touch with someone that wants to set you up with a new monthly 'credit service' bill and draw it out as long as possible. 

Even if I didn't go over the 35k or have structural work, I would still find a consultant to help with all the paperwork, be a go between with the contractors, and they will do the draw inspections as the contractors complete the rehab. 

Your depreciation expense that you take each year againstrental income would be $125,000 divided by the IRS allowed 27.5 years of useful life (residential real estate) for a depreciation expense each year of $4,545."