Yeah I don't want this to stretch out -- I may just give them up to 3 months.

So, putting aside the variable nature of the HELOC interest vs. a mortgage, wouldn't it make sense to stretch the HELOC to as far as you comfortably could so that you create a situation such that the Interest is deductible against your W-2 income?

For OKC and Tulsa it's not so bad, as the city limits stretch across much of the metro area and offers a lot of options...but in Denver, and even worse Atlanta or Miami for example, you'll be searching a much more constrained (and arbitrarily constrained at that) geographic area.

You should put a tight schedule on them putting the financing commitment in place, and have a non-refundable deposit if they stretch that out too long, but you should not care what they are doing with it. 

It might be a stretch but I got a few interesting deals Ive done..

And now you don't even have enough money to buy a 2nd comparable note (or you stretch it, have no reserve and get in trouble).

Some bridge products can get you in the 80%-range but even then it will be a stretch.

(e.g. stretching their budget thin, always improving or fixing something, tenant stories, snow removal, etc. - all of which I believe will pay off in just a couple of short years so I personally think these are great problems to have.) 

Sure, it's a stretch, but the more motivated they are, the better you can create a relationship, the more your chances improve.  

Some of the fastest growing towns in the U.S. are happening along this stretch.