Owned my mortgage company and capital company around 25 years.Give me a reason to count the dollar volume pushed across my desk over the years, you do realize that such amounts are from the same dollar recycled over and over. 

You can walk into a grocery store, ask for the manager, say you want 1G milk for $0.42.

So, they effectively ignored the anti-flipping waiver, and continued to require sellers to be on title for 90 days, sometimes not even allowing a CONTRACT to be written until the 91st day.Sadly, this social awareness of the necessity of investors in the marketplace, and their benefit as a force to help recycle old dilapidated real estate into good, quality, affordable housing has disappeared from the minds of the powers that be at FHA.

My plan is to just use it and then as I get my cash flows instead of holding them in a bank, just put it into the heloc so it gets paid back quickly and that cash is still available to reuse during the next 10 years to keep recycling it. 

I do know the area/comps pretty well (but she knows it better) and I am well aware that I do not know all of the costs involved (but I am learning from yall so that I won't be a jerk, but also want to milk this deal for what little value that there might be).

Milk that cow!

I did forget about people recycling equity but a lot of those people are also using it to pay bills, move elsewhere or just staying put.

It sounds like he's milking this property for all it's worth or maybe there are health problems where the owner needs the money and just can't afford to put it back into the property.  

I just got back from taking the scrap metal to the recycling place for a whopping $28.50.

We used to get steel milk cans from a dairy down their too and use them for all kinds of cool stuff.