I got a HELOC loan on the home for $130k.

When this person goes bankrupt in the next recession, this loan will be part of bankruptcy proceedings.

A Solo 401(k) may be advantageous for self-employed individuals, offering the potential for participant loans, higher contributions, and no custodian fees, as well as higher contribution limits and the option for tax-deferred or Roth contributions.This post does not create a CPA-Client relationship.

If you need more to do the rehab, perhaps instead of partnering, you could get your former boss to do a personal loan. 

@Jerry Chilimidos I am not a CPA owever my understanding is any loans to your IRA can not be personally guaranteed.

@Chinku Chinku how is paying the loan balance down going to help you reach your goals?

Bank pushed us to 40% down payment so also executed a $85K seller carry-back loan to cross the finish line.

Another pro for a HELOC is not having to meet a HML's requirements for a loan (insurance, draw schedules etc....)

And addressing my item #1 comment, almost always, when a "distressed" homeowner is approached, they initially are grateful to have the loan brought current, but before long they forget the circumstances they were in and you become the bad guy that stole their house.

@Summer Shelton yes, FHA loans do allow this but make sure you speak with your lender about some of the trip ups from these loans.