@Dan N.These types of strategies is like building a conveyer belt between your home and your neighbors in order to borrow sugar from your neighbor instead of just walking there, knocking on the door and ask for sugar.Making these overly complex strategies for real estate really adds zero benefit and just costs you extra money in the long run.May I ask why you need such a complex structure ?

If you are just entering the borrowing environment, then come with as close to a cookie cutter project as possible. 

If you cash out equity in a property, you are "borrowing" that money from the lender.

Depending on your borrower criteria, lending appetite, and investor list, you may or may not have tremendous success!

Bonus* Time & Money: Investments are borrowed time.

Hard Money lenders on the other hand (Such as Kiavi, Lima One, Easy Street, Etc...) will be able to finance at a higher leverage and may have some aggressive exposure limits (Higher LTARVs, LTC, and lower borrower requirements).

I need some gentle guidence as a start in what direction to go to find out foreclosure costs.My JV partner and I own a note and the borrower has defaulted and not paid in several months.

For this deal, my mother and I secured financing through a Debt Service Coverage Ratio (DSCR) loan, which allowed us to borrow based on the rental income potential of the property.

In addition to the note and mortgage, consider getting a personal guaranty from the borrower as well.

You won’t be able to borrow against a home in that price range.