Equity Line of Credit on Owner Financed House

[Alex Jackman]

I am looking to acquire a $500k 6 unit apartment building. One of the options to purchase the property it through owner financing ($2,300-$2,400 per month for 20 years 0% loan). If I purchase the apartment building using owner financing, I am curious if a bank will allow me to take out a line of credit or mortgage against $350k of equity and use it as:

a) funds for renovation AND (~$50k)

b) down payment (~$300k) for another ~$1.2M apartment building

In this scenario, I would then have a note with the owner of the 6 unit apartment building, a line of credit against that same property, and a loan against a new property. Will banks allow this type of lending? Will they ask about any private notes against the property? Do I have to disclose the owner financing? Will this owner financing come up during title search? Can I have the owner financing be a unsecured note? Will this note ever show up on my credit report?

Thank you in advance for the help!

Best,

Alex Jackman