Sure there’s the hope of appreciation, but that’s not guaranteed and I like to know that my mortgage balance is shrinking even if it’s very slow.

With conventional mortgage rates hovering around 7% for 30 years… cash flow basically happens at 6.5% cap rate and above.

Likely a retail mortgage lender with extremely high margins.

Most lenders I spoke with said HELOCS are not an option since there is still a lien on the property.  

A regular mortgage for purchase then a creative loan for the reno?

Hi Karim - Some lenders can do as little as 3 months of seasoning.

The most obvious is that you will be able to offset your mortgage with renting out a few rooms.

-Additionally, a lawyer would draft the lease and option contract.Questions:-Will most lenders accept the option fee and rental credit at closing as a seller concession, going towards the buyers down payment? 

My question is that if a deal has a mortgage subject to an existiting loan and a private lender funds the purchase of the enry fee (wholesaler fee/agent fee/cash to seller/etc.)

Regarding your concerns of the going rate over 5% and 5 year terms,  since a standard mortgage is 7% right now, I would expect 7-8% minimum for a seller financed rate.