You're losing money every day (which you can go after the tenants for). 

Here is what is being considered:SCENARIO 1):1) Parents loan us money at X% rate.2) Loan terms would allow for early payment without penalty (we would get a conventional loan in 2-5 years to pay parents back).

Just because you buy something for $350K and renovate it and put money into it doesn’t necessarily mean that you will be able to get a much higher value on a BRRRR strategy if none of the other units in your development or area will comp out.

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I've never actually seen a HELOC where the bank restricts what you can use the money for. 

They were very unhappy they had spent the money with TurboTenant and it is apparently not communicated that not all property managers/landlords will accept TurboTenant applications (which is true for the ones they haven't noticed are not using the TurboTenant applications apparently, which was us, until today).

In the residential world, some requirements are relaxed comparing to commercial so it's up to you whether you want to spend the money to have a better planning versus skip the planning and perform the work impromptu.

@Hunter HarmonFirst off let me say, incredible job on both saving money and doing your research.

That appreciation upon exit is where the real money gets made, and that cash flow is simply a little gravy along along the way.  

I advise telling them it took a lot more money than it actually took to construct.