Additionally, since my parents are nearing the retirement age, I'd like to prioritize low-debt, high-cashflow deals.

If you used a loan to rehab your property and find yourself in a difficult position, doing a straight refi (just paying off the old mortgage) will be easier than trying to pay off the original loan and take additional cash out.

Might be an additional cost there.If units are updated, capex items look good, leases and tenants look solid, and there are no other regular expenses besides the 5200 in insurance/property taxes then I like this deal.  

With some additions, this would qualify for the OMG category, but I think they didn't have that category back then when it was on the market.

Latest update is distributions have paused and they are now raising additional capital. 

The plan is to use the heloc to purchase additional properties, and basically brrrr and pay back the balance - then repeat.What I didn't realize is how difficult it is to find a business heloc.  

We are willing to provide additional documentation to support our request and discuss any potential steps to ensure a smooth and fair process for all parties involved.Thank you for your attention to this matter.

In addition to being illegal, if we had not caught this, (thanks Diogo!)

Feel free to share updates or ask additional questions.

Perhaps you could consider hard money in addition to private money?