The reality is that they are the bad tenants having attitude issues that no landlord would ever want.

The house style is actually unique in this area (though not in the northeast), a tri-level.

It can be based on the ARV like you're thinking, actual LTV (as-is), or some other algorithm(s) specific to a lender's risk tolerance, experience, knowledge, etc.

Especially at the start and in a market such as yours.It might be better to sell it and take advantage of the tax free money and put that towards an actual investment whether that be near you or somewhere else.Good luck.

Also, my parents who partnered with me ended up living there for 8 months and paid me rent, so I have two values, one gross profit for the project including their payments as "investments" and another without their payments looking at the actual project costs.

Thanks guys, funny I've actually used all of those vendors for my last job!

@Willie MoralesIn defense of your lawyer, look at what actual mortgage and loan documents say.

I've seen several posts about how you should get private funding from investors, and although I'm not at that point, it would be interesting to talk to those who have actually done it locally. 

And it being a 1st flip it’s actually more about the experience and getting a foot in the Door.

I spend eighteen months going to the local sheriff's sale before I started actually bidding on properties.