Then for phase 2 you raise $1.6 million and pay off the phase 1 note holders.2.  

I have heard different positions about this... both have good points; on one side the new or small wholesalers are more "direct", many times only "one closing" instead of 2 (big companies) which can save a lot of money if you do several deals per year.

However, my portfolio is mostly B2B and the businesses I work with are comfortable paying the nonrefundable fee plus the refundable security deposit. 

As part of the deal, they are paying me to take some of the backyard.

.✅ Force appreciation over 6 months, then refinance into a DSCR loan to pay off the HELOC.✅ Rinse and repeat!

The property was occupied (still is) with 1 tenant that I am now having the exhausting pleasure of evicting. 2yrs later, said tenant continues to try every angle to delay the court granted Marshall’s execution.The “2nd” floor was poorly renovated (bad contractors), new tenant moved in and a year later, another eviction process has started as they lost their job and refuse to move or pay.Stuck with a very large mortgage bill (that I am paying), utilities and making small repairs to keep the property up also noting the casual 311 complaints from both tenants. 

Your "fixed income" funds do not pay any longer and you have excuse after excuse and refuse to return investor's capital. 

So what you'll want to pay attention to is the total upfront costs and how that impacts your interest rate - I'd encourage you if your lender hasn't already to do a break-even calculation to determine based on your hold and strategy how much costs yield you a positive ROI. 

While living in the other unit, I invested $5,000 in renovations and later found a roommate paying $750.

Quote from @Mario MoralesMorales: what if he got a HELOC, used the funds to get a property, then cashout-refi the new property and pay off the heloc?