HELOC leverage for Seller financing a property?

[Annie Irizari]

Is It possible to do a heloc 1st position on my primary home equity to fund seller fin deal on another SF property? or just do a HELOC? what's the pros and cons to doing this? The deal is a buyout on a REC for the end buyer where the original REC contract went sideways, just for sake of simplification here. I'm looking at $70,000-75,000 buyout to the owner. Here's how the original REC went sideways...

The owner wants to evict the occupant jumping back and forth between renter and seller financing without docs on either, which they cannot until the assumed contract is resolved first  and secondly since buyer-2 paid taxes direct to the county buyer-2 has legal claims and rights to the property. the owner waived using an escrow service for the disbursements and buyer-2 did not have any experience or knowledge in seller financing.  

Am I missing anything in my analysis?? --
(1) it was assumed in 2012 by buyer-2 from buyer-1 at $110,000.

(2) the contract was unclear chicken scratch changes rather than going through a title company to either renew or revise the agreement that shows who it was assumed from/buyer-1  to  buyer-2

(3) an escrow service company was not used on the transaction for payment disbursements to be properly recorded, potential mismanagement of fund disbursements.

(4) buyer-2 paid property taxes direct to the county, which should have gone through escrow service had this been done right. 

(5) back taxes as of 10/31/2021 $9,125 due to lack of escrow service, potential mismanagement of fund disbursements.

(6) there is no paydown amortization table for the deal so I had to recreate it for everyone to figure out the payout balance from the time it was assumed in 2012 to 2022, which is at $95,000 using an online bank amortization calculator.

(7) buyer-2 made $23,000 overpayments to principal direct to 3 different bank accounts for the owner/family since there is no escrow service company ($23,000 overpayment to principal implied, factored in buyout offer/term from my company as investor since there is no paydown records from owner 

(8) 95,000-23,0000 overpayment of buyer-2 = 72,000 is the buyout amount I am presenting in purchase agreement plus concession to pay the back taxes and closing fees.

(9) I would be the investor assuming the note for buyer-2 and enter into a new seller financing agreement with my company at $70,000-$75,000