.), index funds are likely to provide an equal or better return with a MUCH lower hassle factor and more liquidity.

An investor may be interested in investing what is equal to 15 - 20% of the property value for a 13 - 14% return.

  $200/month divides into the $100K initial negative equals 500 months to recover the initial negative equity.Let's double the cash flow to $400/month.  250 months to recover the initial negative equity so over 20 years.Let's reduce the negative equity position to $50K (which likely is less realistic than expecting $400/month cash flow at that rent point), you are at over 10 years to recover the initial equity position.Now let's do it with all cash, no financing.The 50% rule state $900/month cash flow.  900 * 12/200K = $5.4% or about half of lifetime return of S&P 500, or what can almost be achieved with a zero work, zero risk CD.I see no way that someone who understands the numbers will call this a good investment.Note just because an investment is better than most other investments in a market does not imply something is a good investment. 

Going to depend much more on more details / your personal situation - all things equal you will probably get better rate/terms on conventional if you qualify for both

With the HELOC you have more cash flow paid out equal to the amount of interest on the HELOC.

A “contract to hold” binder payment equal to a month’s rent would also be collected at that time.

You have to play in order to win, but if you never get in the game in the first place that in and of itself equals failure.

If they are VERY professional, they will have their processes in writing as verification that policies are enforced equally and fairly by their entire staff.6.

You should speak with a CPA and a tax attorney to be safe.Regarding your thoughts about 1/3 equal splits - sounds good until you check out the cost of getting a DSR rehab loan or borrowing hard money.

In the long term  expect RE to appreciate at a rate equal or greater than CPI.