Also, did you have any other loans (ie student loans, primary residence mortgage, etc) when you took on the $25k? 

These properties can provide cash flow and diversification while qualifying for favorable residential loans.

HELOCs are not available because they are residential loans guaranteed by individuals and what you seek is a type of commercial loan or credit line which are available to seasoned companies with proven financial track record.

People reinstate the loans and do loan modifications all the time.

Just use common sense.When you get a request that asks if it is available when a quick look at the calendar or the inquiry show it is available then you should be on the look out.

So I told the old owner I will trade you the house and landbank the loan..

You could use a HELOC, but with VA loans you have an allotment so you can get loans on more than one home depending on how much bandwidth they give you.

Your loan would be on a different property so no financing on the property you are buying. 

Cash out refi only if the rental income significantly exceeds the monthly payment and you want liquidity to invest elsewhere.2.You can maybe do a HELOC if you want a smaller loan that doesn’t involve refinancing the entire house.3.

I don't like AI descriptions (sorry @Andrew Steffens).They look and sound completely like it was written by a bot, which it was.I like to write my own copy for listings and I respond directly to all guests, inquiries and issues.