I understand your concern about the balloon payment, I feel the same way.

It's a much more financially sound method (in my humble opinion) than borrowing more, at much higher rates, and banking on the ARV speculations to get you out.As far as the draws for rehab costs...credible direct lenders are going to require either you or your GC to front the first funds for rehab.  

The SAFE Act describes compliance being required for any method that attempts to circumvent the intent of the law.

That prevents loan sharks from trying to collect their debts through the courts--they use other methods.

I'm sure I could come up with an adjusted rent that's reasonable if three tenants are indeed living there.Bigger concern is character and the deception/misleading application.

I have never had an insurance agent ask which kind I have so no insurance concerns.

I am just a little concerned with quitting a full time secure job to go into a 100% commission based lifestyle.

the lender is concerned with continuance income here and in a traditional situation would require some type of lease agreement or proof of receipt of rental income.

So the renovation and trust factor im not worried about.Im more concerned with the real estate market in Merrillville, my 2 properties there are in good areas, the houses just need extensive rehab work.

yes we have the right documents in place, as we did when we first started, to show the proper ownership aligned accurately.I think we now feel its best to part our ways as far as ownership is concerned so thank you for the feedback.