Loans can’t connect to the bank feed like checking or credit cards because banks/creditors don’t send that kind of data.

What you’re looking for is either a HELOC (home equity line of credit) or a home equity loan against the property, without touching the main mortgage.Quick breakdown:HELOC acts like a credit card against your property.

One thing I would do is the foundation and the termite, check to see if you list it at market value if you can get someone to buy the place and disclose the issues and give them a credit or meet them in the middle or even 2/3s of the cost and you can save some money and maybe even get the deal to make some money. 

Since you’re using it as student housing, you’ll want to make sure the appraiser is aware of your rental structure and income potential, because sometimes they can consider income in their analysis.If your main goal is paying back your family member quickly, I’d look at a couple of routes: one is a straight refinance into a DSCR loan once you have some stabilized rental income documented; the other is to consider a line of credit or even bringing in a small partner if the refinance doesn’t pull out enough cash right away.

Do you focus on current yield, borrower credit, or exit assumptions?

Failing to disclose an intent to incur new debt could lead to an objection from a creditor or the trustee, case dismissal, or even accusations of bad faith.https://www.hollandlaw970.com/consequences-of-bad-faith-fili...What Might Happen if You File a Bankruptcy in Bad Faith?"

For example, this is what prevents your personal creditors (e.g. you get into a car accident and injure the other driver) from easily going after the assets inside the LLC.A comprehensive asset protection plan will account for both inside and outside liabilities.

Lawsuits, liabilities, and creditor claims can quickly jeopardize everything you've worked to build.

Find a reputable creditor's rights attorney.

Structure it as an LLC (not a handshake).Form an LLC and have everyone listed as a member based on their contribution — whether that’s cash, credit, or sweat equity.