Loan to value ratio: The higher the loan to value ratio (LTV) is, pricing takes a hit.

Market forces will generally hit real estate similarly.  

He is willing to set up very amenable owner financing terms and take the capital gains hits on monthly payments we work out as part of the deal. 

Some properties can hit those numbers and some can't. 

@Kyle FitchHaving an investor knowledgeable agent will be able to set you up on an alert that can tell you when a property hits the market.

First thing I see is you're close to hitting the 2 years OO for a tax free sale on any gain...obviously you don't currently have any gain, but if you can wait it out then any future gains would be tax free...it gives you some wiggle room later. 

Again, all I have to do is download my bill into a folder, and the rest is taken care of.I'm not a fan of paying utility bills because they eat into your cash flow, and the tenant may not be as "resourceful" with their usage if they aren't getting hit by it.

The issue that I'm facing now is whether I want to pull it out against one of my rentals or on my primary.I have found a bank that will allow me to borrow as a second lien on rentals but their rates are higher than what I could get when just doing it against my primary.What I'm most worried about is what happens in a worst case scenario, should something drastic happen in the market.From what I understand, using the money against a rental doesn't necessarily provide much more of a safety blanket in case things hit the fan because if, somehow, the HELOC lender can't recover their money, you'll get sued anyways.

Once I hit my reserves goal, I transfer the additional money to a separate "War Chest".

Hit me up if you need help.