Fully occupied, the property grosses $5,570/month with $4690 net profit after expenses.

So you can achieve a very small financial savings due to how the average daily balance is calculated on a HELOC... but would you rather tie up your HELOC to save $12.63 in interest a month, or use those funds to make more profitable investments?

He's had two successful flips so far and after this third one he's looking to pay off the HELOC and roll the profits into his future flips.

That house won't have a profit for 3 or 4 years now. 

With a passion for finding undervalued properties and transforming them into profitable assets, they are eager to learn, grow, and build a successful real estate portfolio.

I believe it is a larger issue than what we define as the economy, which is mostly measured in corporate profits and Wall Street performance, this is not what the average person perceives.

If you catch these at the pre-foreclosure stage as slow pays or initially in default all the better as the bank has less in collection expense.You can still work out a discount but even buying at the payoff it can be profitable depending on the property value.You can practically force a lender to sell as it can fully indemnify them as a full payoff as demanded, continuing with a foreclosure becomes a rather vengeful act by the bank to punish a borrower, they don't want to go there.

small profit Lessons learned?

Currently own a STR thats been profitable for almost 3 years now and in the midst of a Live-in Flip.

For traditional loans that rely on personal income and DTI (Conv, govt), there is no requirement that the properties be profitable.