It doesn't mean you cant work out a deal with your neighbor. 

It doesnt always work out but if your patient it may!

I'll absolutely contract the work out for all properties going forward.

I'll absolutely contract the work out for all properties going forward.

Trusting things will "work out" will never work.

If this case happens sometimes the property owner goes to their lender with the mortgage for a temporary workout solution as it would be hard to cover the total monthly mortgage payment while having to give tenant temporary rent relief until construction is completed .

I have also suggested allowing his attorney and myself to work out of the details and all he would have to do is give power of attorney to work on his behalf to get the deal done.

You provide funding they bring the deal to the table and you work out some kind of split.Keep working, keep grinding, you'll get there

awesome when things just work out

thanks for the input @Brie Schmidt @Henry Lazerow. even at 250k rehab, this would've been great as a normal investor to owner occupy for ~$550k all in. crazy how much difference the labor costs  make rather than being the GC yourself/having connections. i assume easier said than done to get a 203k to work out and be completed in 6 months for something like this. not sure if even posssible as it seems this might be coded as a 2flat and then 550k is over the fha limit. so tough to make 203k work in chicago..this was the closest property ive seen to anything being feasible for an average joe to gut though