This basically brings the borrower back to 0 financed properties for conventional lending purposes as of current guidelines (May 2017).The most effective way (90-95% probability) to make sure an underwriter doesn't count them in your financed property count is to have your LLC that holds your properties file a 1065 partnership return since these properties do not flow down to your personal tax return (form 1040), and therefore only issues a K1 form down to your personal return.

Most of these services charge a flat fee so it's inexpensive and effective.  

Rohan, MBA, LCAM On July 1st, 2017, Florida House Bill 1237 became effective, adding new provisions and making amendments to existing Statutes contained in Chapter 718 of Florida Condominium Law.

It would be having a discussion, posting notices if need be, then asking if they would like to be released from their lease. 

Rest:  https://www.mortgagenewsdaily....Good overview from Mortgage News Daily of the recent CPI/Fed Meeting effects on mortgage rates

So would using financed funds for the downpayment effect the likelihood of a commercial lender lending on it?

If he has effectively abandoned the property don't worry about the keys and have the locks replaced.

There are some HMLs that will lend against the ARV, and in some cases effectively lend 100%, but as you can imagine, these are few and far between, and usually only in very competitive markets for HM, and of course, they are much more expensive. 

I think this can be an effective strategy depending on a number of factors - I do this type of investing both with my HELOC and the cash value in my life insurance (using the life insurance avoids the variable interest rate issue).You need to make sure that the investment you are making will have enough of a cash on cash return to cover the interest payment - as several have said here, that is tougher now that interest rates have increased on HELOC's. 

Overall, a scope of work is an important tool for managing and completing real estate projects in a timely, efficient, and cost-effective manner.