Here are the details:Bought in 2015Owes - $45kNeeds additional $20-25k as a down payment on the new house for equity.Rate - 6.125% (Adjustable Rate Mortgage) Max is 8%PITI - roughly $700/monthHouse is in great condition so no rehabAsking $175,000, could sell on market for $220-230kRents - $1400-1600How would one structure this deal?

I got word today of a lender willing to do a 2nd position DSCR!

In addition, Scottsdale has a limit of only 6 adults per house, no matter how large it is.These restrictions have nothing to do with red/blue states, they are the result of NIMBYs, who are all over.  

Additionally, these attract a lot of inexperienced buyers who started in the single family or four plex space who are trying to go bigger. 

Usually you can add additional support and fix this problem but I did run into one house where there was a single center support running through the middle of the house that was entirely rotted and the only way to get a new support of the appropriate length in would have been to take out a portion of the basement and first floor walls.

On top of that, there's a bill working it's way through the state to add an additional sales tax on real estate.

So for now I would say my goals in REI are to learn as much as possible, build my net worth, and put myself in a position where I can decide whether this would be a viable business for me to focus my efforts in.

FINANCIAL CONTRIBUTIONS:1.1 Party 1 Responsibilities:Party 1 shall contribute to the partnership for the down payment, closing costs, and construction costs for renovations and additions.1.2 Party 2 Responsibilities:Party 2 shall independently pay the mortgage until both properties are rented, oversee construction and renovation, manage both rentals, and handle bookkeeping during construction.2.

You're currently getting just under $600 per unit per month in positive cash after mortgage (PITI?)

If you don't get any additional feedback, you should be able to call the City of Phoenix Planning Dept and assess the overall process, timeline, fees, and feasibility fairly easily.