Lending recommendation

[Justin Russell]

I'm looking for advice on lending options for a deal I'm considering. I have only one deal under my belt and it was quite conventional, so the more hand holding the better :)

The property in question last sold for $711k in 2012, in line with comps. Single family residence with a legal, detached ADU, in a track that's middle market for its location.

The owner defaulted something like 18 months ago, the foreclosure has been drawn out. I saw that it was coming up for auction, but the day of, the bank withdrew it from the auction. 

I figure something is up and drive over to look in to it further. There are now three families inhabiting it, one in the ADU and two splitting the house, one per floor. They have done some superficial damage and littered the lot. It looks awful really. But a GC I trust took a good look over about two hours and is unconcerned regarding the roof, foundation, plumbing and wiring, and gave a rough estimate of $55k to bring it back on par with the rest of the neighborhood.

On a lark I spun up an LLC and mailed an offer for $425k contingent on financing. They rejected it after three days, then the next day accepted it.

That was a surprise. They caught me fairly unprepared really. How should I go about financing this? 

I have about $17k cash on hand, $146k in liquid investments, and the delta between my rental's last appraised value and its mortgage is $71k (though I'm not sure if one can get a HELOC on a rental property); it produces a little positive net cash. I can't live in the house, as the location is out of state and while I'm often there, it wouldn't work well with my day job.