That's called "cross collateralization", and is a common technique to use one property's equity to acquire another.

After you rehab it and get it filled with good tenants, you can always refi to get your money back, or use the equity in this property as collateral for your next deal.It could be that some saavy investor bought a couple of similar buildings recently and the appraiser is using these low comps.

So I end up with land only that no one else bids on.Having it free and clear it does have equity value and with enough of those "purchased" I will put them in a portfolio for the bank to allow me a line of credit, with those as collateral, so that I can fight for those good homes to buy as investments then sell for my retirement nestegg.Not sure how long it will take as the good home will have to pay off the line of credit and provide enough extra for the next good home.

They must like the collateral in case it goes bad...they would just go back to the position they were in before.

First position would get there money back first from the proceeds taken from the loan collateral.

We've used Phoenix Collateral Advisors and they've been pretty good.

I can say that I will not be able to use the land as collateral which I believe may be a big hurdle.

@Todd Leicht union bank does NOO helocs. 65% LTV, I/O payment option, $450 max appraisal cost, West Coast collateral only.

They can craft a loan package with the terms and conditions and ensure your money is protected through collateral.

Can you move your pension to schwab or elsewhere and use it as collateral for a re loan?