These overlays to the Fannie guidelines are introduced by the investors to mitigate against risk.

I want them at the job site as much as possible to mitigate delays.But, I am with you Joel, I often become enamored over doing a flip too!

Partially mitigating that risk by building up equity, is both a personal preference, and, form where I sit, a careful financial choice.

I worked with Loss Mitigation Services and Workout helping resolve peoples issues with completing everything from Short Sales to Deed in Lieus of Foreclosure.

It depends on conventional,conduit, or a specialty loan.Recourse versus non recourseLoan TermAmortization PeriodInterest RateLoan FeesLockout PeriodPre-payment PenaltiesCredit ScoresUnderwriting GuidelinesLoan Documentation There are absolutely loans you can do putting 10 to 15 percent down and have the seller hold a second for 10 to 15.For the seller many don't like to do this for many reasons.1.The second usually can't be sold off if they want payment now as note buyers want first position.If they buy a second the property would have to have substantial equity in a declining market to mitigate risk for the note buyer.2.If something goes wrong with the property the owner almost always defaults on the second first and stops paying the note.3.If the seller has limited equity then taking a second back might have the seller bringing cash to closing just to cover closing costs and real estate commissions.There are other reasons as well but you get the idea.On the 70/15/10 type loans the interest rate will usually be 100 to 200 basis points higher (1 to 2 %)The less skin you have in the game the more uncomfortable the senior lender is.Hope it helps.

This would also mitigate a lot of the issues above.Rick

Can you temporarily move her things to dry storage to mitigate any more damage?

As Jake said, making sure there is an exit is one way to mitigate that risk.

The development was originally planned to include 15,000,000 square feet (1,400,000 m2) of retail, office, residential space as well as 11 acres (45,000 m2) of public parks.[3] Its size encouraged the Postal Service to award the neighborhood its own ZIP code: 30363.[4]Atlantic Steel MillAtlantic Station was designed with energy efficiency in mind and many of the buildings are LEED certified.[5] Additionally, the project was developed to help mitigate urban sprawl and reduce air pollution by allowing many more people to live and work within walking distance of most everyday things they need, with many alternative transportation options nearby.

An appraisal mitigates the influence of emotions.