I fought like hell to keep the property as my brother and the lawyers wanted to sell it and put the money in the pot.

I think this one would make sense as a DSCR loan, but you would be putting 20% down on it.

building multifamily is one of the lowest risk strategies out there. single fam has no economies of scale and in columbus right now I would argue that the cost of a garage is greater than the value you even get for an appraiser. so a 400 sq ft garage if that was heated space is worth 5x to 6x. because of that, we build multifamily more because of the economies of scale as well as density, increased rent coverage, etc etc 

If duplex is vacant when you are doing the renovation, the normal policy we use is a Renovation Builders Risk.  

.- At the surface it sounds like a great opportunity, but I think there needs to be some more digging into the numbers to understand if its worth it at that price, and what the risk profile is.  

Now that you are behind the bank has to put this as a liability on their books and have $400k cash set asideBanks only require 10% reserves typically so that $400k is stopping them from lending approx 3.6M in loans 3.6M at 7% is a big number and will lose a lot more from this than $10-$20k on your loan.

Explore various investment strategies based on your risk tolerance and investment objectives.

Even if we did tear down and rebuild, im afraid it would put us under water or at a break even point if we are super strict with the build budget- plus adding to that, I don't know how the rehab lender would even look at this now if we do have to tear down.

Yours may be, so if you can make your PITI in rent, then putting a tenant in the house and having the lease end at the beginning or middle of selling season could make a lot of sense.

We put the property in an LLC so I could use the first time homebuyers grant.