Definitely have an exit plan to replace the funds from the HELOC - sounds like yours would be to sell the property and pay the bridge off.

That's the way you have to sell it to the Broker, is that it's going to bring in additional revenue and lead sources.

Will he still have to pay capital gains if he sells? 

I am looking into selling my STR in TX using "subject to the existing financing" while utilizing a 1031 exchange into a new investment in MN.

Hi, I'm a relatively new investor - I currently own one duplex that's fully rented, and have one completed flip property on the market to hopefully sell soon.My next step is partnering with a family member - an uncle - who has expressed an interest in providing me with financing to help me scale my business. 

When you sell that property depreciation recapture is technically measured on "allowed or allowable" depreciation on the property - meaning there is a possibility if someone claims the 80% and doesn't fix it, they'll still be paying recapture on the 100%, even if they didn't get the tax benefit of it.

Lets say I do a $100M project with a 1% fee and then sell it in 18 months at a loss or no money.

We've thought about seller financing, but can't imagine someone selling a $649k house for a small down payment and even smaller monthly checks.

It is in black and white from literally THE source:  https://selling-guide.fanniemae.com/Selling-Guide/Originatio...Now for the good news.

This allows the lender to easily sell the loan on the market and buyers of the note have some guarantee of their return on investment.If you are an investor looking for a great loan product, keep the DSCR loan in mind.