If so and the monthly payment isn't too bad then you're still moving the needle forward if your main goal is wealth generation and not just cash flow. 

I used 7/1 arm provided by builder. its 5.25 with 30% down payment

They also want a priority lien on the property.It sounds like you are looking for someone to fund your down payment, I would be looking for an equity partner over debt as nobody likes to lend money in insecure positions, especially when a borrower lacks skin in the game.How much are you planning to come in with yourself?

I don't like paying interest on my down payment unless I know it's a temporary aid to get a good opportunity.

You could offset your mortgage payment on a bigger house with the cash flow from the rental. 

Show the lease agreement, show his rent payment history, and show any written evidence from the tenant that he admits to being late/unpaid.

Continue Funding my Mid west BRRRR clients like the land if we get history I provide 100% of purchase and 100% of rehab and there is no monthly payments really helps these guys / gals scale..

What type of transaction fees should I be looking to pay and is there a down payment required?

BUT there have been 24 late payments with the last late payment made in Nov 2024 and  0 paid on time.

Personally, I wouldn't use a heloc to then go purchase a primary residence, unless what you can rent the current SFH for enough to cover the current mortgage (assuming there is one on the property) and the heloc payments.