Technically, they never obtained loan approval (a contingency of purchase) so the contract became invalid.

This means the initial interview is perhaps your most important interview in this audit.You need to get your proof of material participation time in good order and technically correct before your first audit interview.You should have a record of the time you spent on this activity.Your record of time spent should be made on a timely basis (kept at least weekly).As you do for the mileage record on your vehicle, you can keep a test record for three months in a row if that record reflects the average time spent during the year.In the initial interview, the IRS is going to scrutinize your travel time to ensure that the primary purpose of your travel is business.

If it's an SFR you could technically get a HomeStyle reno loan on it, but that would be a lot of closing costs and other nonsense just for an extra $5k.I'd suggest credit cards or other unsecured borrowed funds -- get it done quick and sell it quick to pay it off. 2nd best might be some sort of equity deal with another investor who has $5k to invest. 

It takes the edge off of trying to use the money/forcing a deal since I am not paying interest on it until I draw it.But there are a couple of different variables in your situation, you will technically have to pay another set of "closing costs" when you pay off your home, whoever gives you the heloc will have to appraise, underwrite, etc. 

These jobs have provided me a depth and breadth of experience (not just technical, but business, marketing, customer service, management, etc) and I intend to leverage it all as lily pads towards my goals. 

But it is a requirement and technically they can foreclose if you don't provide it.I just provide a current rent roll and/or income statements as suggested above.

There is nothing technically wrong with your plan.

Price is $275K, he won't carry anything back45 spaces12 lot rent28 park owned (would sell those to tenants on owner financing/rent to own to get to lot rent)5 Vacantpark homes rent currently $400-425lot rent currently $125- I think market is 175-200, but not many parks around so has been hard to get numbers3 bed houses rent in nearest large(ish) city of Florence SC (30 mins away) rent for $800-900city water and sewersmall park footprint wise, just 2 roads- 1 paved 1 dirt- and all houses in the middle of it, very small footprint, tight parkArea:Marion SC, super small town, but is 10 min from super walmart, 30 min from Florence, that is the nearest MSA (technically Marion is not in one)Marion small, slowly dying town; Florence growing, solid city/townFlorence metro good growth since 2000, like 17%, low unemployment, everything looks solid there.Numbers:I am pro forma-ing it at $150/space lot rent, 40 spaces, $6K/mo, after 45% to expenses is $3,300/mo net/mo... which is $39,600 net/year14.4 cap on property pro forma12 cap on property based on 125/mo lot rent at 40 spaces.

@Bill Crow - Technically just the property has to pass inspection.  

Won't your credit be worthless in a way since you technically do not own any of these properties?