Hard Money will fund 90% of the purchase price and 100% of the rehab on a draw schedule. 

Unconventional advice but focus on making money first before thinking through every tax implication and planning scenario, you and your father in law will never draw the same conclusion which is perfectly acceptable. 

I’m also curious what lenders would offer me for percentage on the down payments, I put 5% down on my current Hi Emma, If you put 5% down, it sounds to me that you bought your primary residence. the minimum down payment on investment properties is 15-20% down.DSCR financing does not require personal income or personal debt to qualify, rather you will qualify based on credit, experience, reserves, and the debt coverage ratio.

This was done to protect senior citizens on fixed incomes from being forced to sell their homes due to unaffordable property tax increases.Since the passing of this amendment, all properties in Michigan have two property tax values associated with them:State Equalized Value (SEV): supposedly equal to 50% of the market value of a property, not based on recent sales price.Taxable Value: the SEV annually capped as long as there is not a transfer of ownership.City Assessors are charged with determining how much property values have changed each year.

Based on that document is why I believe this to be true.

Usually, DSCR cash-out refinances are calculated based on a percentage of market value, usually around 75% LTV.

Whereas if you go into the more desirable neighborhoods, you are competing with owner occupants buying properties based off emotion and not concerned in the slightest with the rent/price ratio.

I am pricing the build based on cash flow and what I need to start my other venture.Numbers are:Sale Price: $450,000Income: $77,832 / yearExpenses: ~$30,00 / year6 UnitsAt $450,000 sale price, cost per unit is $75,000 with average unit bringing in $1081 per month gross income.At $450,00 this would follow a 1.44% rule.If anyone is interested or has advice on how to find leads to sell this property based on cash flow, please reach out!

Due diligence, leasing/income based contingencies, closing organization, documentation, title groups, broker responsibilities, among other things toward the middle and back end of the transaction.

I am based in Los Angeles and have had luck with this BP tool.