The structure is as follows:I receive the property as a gift, based on its appraised valueWe sign a promissory note for that value, with the intent to pay it off at refinanceI assume operational control immediately and take the lead role in managing the assetI’m modeling this as a hybrid between a gift transfer and a seller carry, and I want to ensure:The promissory note is compliant with IRS rules to avoid imputed interestWe’re not triggering unintended capital gains exposure on either sideThe deal protects both parties in case of default or delayed refinanceIf anyone has experience with family-based seller financing, promissory note structuring, or tax overlays in hospitality or real estate, I’d love your input.

Your plan to use the HELOC to buy, rehab, rent, and refinance (the BRRRR model) makes a lot of sense, and a lot of investors get started this way.

There are turnkey providers who's business model is to either find and rehab, or help you rehab after you've purchased.

The oxford house model requires that all tenants pay equal share of the rent per week + utilities no matter how many beds are filled so if all 10 beds are not filled then the weekly rent/utilities goes up for the remaining tenants so its super predictable and consistent for the landlord. 

It sounds like that model has been working well for you guys!

That was the early vision, but after deeper zoning review and conversations with Pueblo County, we pivoted to a clean A-2 subdivision model with 1-acre minimums—no rezoning required.So now it’s:- 64.4 acres- 60 one-acre lots- Zoned A-2 (no entitlement battles)- Infrastructure-only play—no vertical construction requiredThis shift simplifies the deal, speeds up approvals, and aligns with rural buyer demand.

We are planning to rent our ADU as an MTR to comply with the law and because that model better fits our business needs.

Had it not been for her expertise and help I would have been lost! 

We did a full re-model and took it from a run down old antique store to a beautiful office space.

It's a declining biz model.....the city is trying to crack down on them, and insurance co.s are pushing back on the testing charges (which is where the profit is).