I also know I can look at ways of borrowing against that equity (HELOC for example) but I also just feel like if I take debt on that property the cashflow goes down, and then if the association also takes the loan it goes down more, and at that point I don't know why it would be a better option than selling before August. 

In Tampa here as well.That is a question for your asset protection attorney, but most of our borrowers/clients in FL have LLCs.

What is the best way to show cash in hand in order to buy it when you don't have the cash and need to borrow the funds?

The other part of this is that in addition to this, we are borrowing from our home equity line of credit to put down the 20% deposit- so we have that payment too.   

The renter has given you the money to cover your borrowing costs and pay for the home's upkeep. 

@Eric L Conry you are essentially borrowing on your property to buy stocks.

Great questions - a lot of our borrowers will tap the equity using a refinance in order to purchase their next investment property.Feel free to give me a shout anytime, happy to help!

Now that the previous owners have nothing to borrow against, . . . how do they do that?

If I'm borrowing at 7.5%, is that value destruction (unless appreciation is really good)?

It gives you the flexibility kind of like a credit card that allows you to borrow a certain limit and withdraw funds as needed.