So I figured that if I could avoid negative cash flow, the other two sources would carry us until rates declined and we could refinance to lower interest expenses.

I do believe that your HELOC will be a great source of capital to start your first deal but I wouldn't use it as a down payment (Speaking from my own personal experience).

Does it have negative grade?

If you have any further concerns about mold/fungus an industrial hygienist should be consulted.Grading and drainage is either negative (slopes towards the foundation) or neutral adjacent to the left of the building, and moisture intrusion will remain a possibility.

Just to add...all negative feedback is wiped off the platform in seconds. 

@Jessica Swanson, I can't speak to Texas specifically.

Hey there, you should Speak to @Joseph Bui.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

A lower down payment might lead to a break-even scenario or even negative cash flow.

The most likely outcome here....just speaking from experience.