Plus, it gives you peace of mind knowing you won’t be financially liable if something goes wrong.Make Sure You’re Covered TooSpeaking of insurance, don’t forget about yourself!

(I'm also a real estate agent)In 1 year from now I have option to buy the property for the existing loan ($376,000 in one year) plus $45,000 directly to the seller.

It also doesn't warranty against any title issues that may exist. 

This sounds like you have an existing, and I assume, successful practice in place.

It’s “illegal” to purchase a property without the approval of the existing note holder (subject to)2.

Contingency Fund: With both a HELOC and a hard money loan, it’s important to have a contingency fund for unexpected rehab costs or delays.In terms of your numbers, it looks like you’ve accounted for a lot already, but running a few worst-case scenarios might give you peace of mind as you move forward.

This policy will provide additional coverage above what your existing policy covers.

Steve: If you are going to bid on an Ohio Common Pleas Court  foreclosure, the process is pretty safe because the foreclosing lender has to include a "PJR" which is actually a "Preliminary Judicial Report" which is a title report and include a commitment for title insurance should the bidder be successful and the property to be conveyed.This differs from a liquidation auction by a lender, private auctioneer, receiver (other than an actual foreclosure case) where you might be successful but the property has pre existing liens that don't get swept away by the foreclosure case.For your first one of these, get a lawyer to advise you.

Based on your numbers it seems you made your offer on the existing income anyway with a little bit for the potential growth of the unfilled spaces but probably not much. 

Also syndicators massaging debt to make deals pencil to entice LP investment and are now struggling with existing deals blowing up.