It's rare that a property that needs "a lot of updating" will get top dollar.I've converted a couple of primary homes into rentals. 

I have clients that recently purchased a 4br in San Marcos for $560,000 on a big corner lot, they are planning on building a detached ADU and converting the attached garage into a 400sq ft JADU.

Purchase price: $35,000 Cash invested: $25,000 4 bedroom (converted garage) 2 bath around 1500 square feet.

Price: 470k Building: Duplex with a big detached garage in the back that was converted into a large studio.

The better value here would be to find something closer to 200K that maybe you could fix up a bit more or convert a 3rd bedroom (maybe previously unpermitted space etc).

When it was converted to a rental it cash flowed negative by $200 a month but I was ok with this because properties seem to appreciate endlessly in this market and the tenants would be paying down principal and honestly I was just so happy to be able to hold an investment property like this.

If the home was initially a primary when you opened the HELOC and then you converted the home into an investment at a later date, the lender may deny the subordination request and also close it entirely. 

Please help me with tips and ideas that will assist me with potentially getting this flip right on the first try allowing me to convert this opportunity into a business and show my husband why he should trust me on this.

Asking Price: $205,000ARV: $350,000Repair Costs: $50,000Current Loan Owed: $150,000My ideal plan would be to take over the loan payment, pay them the equity, do the rehab and convert it back to a legal 2-family, and then refinance it into my name for a long term rental pulling out my initial (or at least a large chunk) of my investment.

You''re wanting to convert investment gain into a primary residence.