I've worked at lenders and I have brokered, and I have been part of broker chains that had a few brokers on a deal so I've dealt with every moving part of this process: Title Companies, Insurance Companies, Lenders, Borrowers. 

Taking that money out and anything that leads to more people using the equity from their homes and reduces the friction to that process is not good in the long run.As a NPL buyer who buys 1st position mortgages, we do watch stuff like this carefully as the moment these borrowers get high CLTV's any drop in pricing and change in economic conditions will lead to more foreclosures versus bankruptcies.

Thank you for your help.If  cash out refinance the property, how do I paid back the 165k I borrowed (Heloc)?

There are lenders that will finance newbies, even at 100% of the purchase & rehab, but if the numbers do not make sense, the chances of that deal getting to the table are thin (especially if the lender wants to help borrowers succeed, not help them fail).The lender's underwriter looks at every deal, but especially the lesser experienced operator's deal to determine what is exposed vs what is the return.

Energy tax incentives were expanded and extended through 2032.Be sure to keep an eye out for any changes to 1031 exchanges and capital gains tax rates.Buy, Borrow, and Die StrategyA great estate planning strategy for transferring wealth and minimizing taxes is the Buy, Borrow and Die Strategy.Buy: Purchase multi-family properties that are appreciating in value.Borrow: Use HELOCs or cash out refinancing to pull equity out of the property as it appreciates.

Banks and credit unions can also offer flexibility for investors that engage in strong relationship-building strategies, offering discounts and solid loans in exchange for borrowers willing to use the institution for other purposes (savings accounts, etc.).

A general credit line, on the other hand, could be secured by other assets or unsecured, and doesn't necessarily involve your home equity.HELOC Characteristics: - Uses your home as collateral - Usually has a lower interest rate than unsecured credit lines - Typically has a variable interest rate - Allows you to borrow up to a certain limit, repay, and borrow again during the draw period - Can be used for various purposes, including home improvements, debt consolidation, or as an emergency fund While it's possible to use a HELOC for RE investing or rehab projects, some lenders may be hesitant about this use.

@Vinessa EiseleInteresting negotiating skills.I have lenders who will allow seconds on DSCR loans, but the "seller financed" part is limited to 15%, whereas the borrower must bring at least 10% of their own funds to the deal. 

I obtained a commercial loan that was a 1 yr interest only and required 25% down which I borrowed from my step father to be repaid after closing plus a $5000 payment.

I'm not familiar with non qualified mortgages, I'd generally assume the less mainstream/vanilla the borrower, the higher the costs and rates, why would non QM instead be lower costs?