Would suggest finding other means for sure, since most lenders dont like to see that much cc debt even if you are making all payments on time and pay them off each time. 

I found out that I can't even put out bandit signs because as a agent, you can't put out real estate signs without your brokerage name and the usual equal housing opportunity images on there.He said wholesaling is perfectly legal as long as I am careful of how I tell things to a seller.

At the top (where we are today) I'd rather acquire a B+/A- asset with an 7-8% yield and a long (15 (agency) to 35 (HUD) year) fixed rate debt instrument.

@Christopher Winkler My understanding is that if you don't file a POC before the deadline, your debt is not included in the payment plan but your debt continues to exist and collect interest.

The home is currently zoned for a 2 family.I'm looking to refinish the basement and create a third (legal) studio apartment. 

If your guy is preapproved for a loan, his bank most likely isn't going to fund the deal with income like this for the reason that you mentioned, free cash doesn't even cover debt service.

Whether or not, the demand for what you are doing must be high, city legality law, and the normality of a new structure going to be typical in that area? 

I will then take the money earned from that and apply it to the next one and so on.This is called the debt snowball and it’s what works for me.

We currently own and manage 3 other rentals but out debt to income is high so conventional/bank loans are not currently an option for us.

Do not rely on it for legal advice.