Good for outlining what to do but, as said above, doesn't help you get a deal in a fast market like Dallas.

While I would agree that parts of our system are used to keep people down (why is it a Freddie Mac SBA or commercial loan is non-recourse, but primary resident aren't), transferring into an LLC creates many issues, as outlined above.I wish you the best though. 

I have investigated both paths and have settled on the HELOC for now (for many of the same reasons you have outlined). 

The other, does not allow for that even if the contract is cancelled for up to a specific period that is outlined in the contract.

It also outlines that they are not to use draino, liquid plumber, etc. 

Very common for the lockout policy to be outlined in the lease.

If you don't have it already, I would put together a written Applicant Screening Criteria document that outlines what you are reviewing and your criteria (e.g. 3x rent in gross monthly income, NO evictions, etc.). 

Consider yourself extremely lucky.If you want a crash course in wholesaling, which is sounds like you need, there's a short book that outlines the whole process.

I just wanted to find out from some other home owners that have used this or lenders that support it what's the catch or details outlining what the state the house needs to be in and what is supported by this.I feel i have enough funds to support a decent renovation on this house out of pocket.

What I have outlined here is precisely how I made the transition from SFH's to Multifamily.