Generally,  a true wholesaler - meaning you're going to want to pass the property off to another buyer - is going to want to arrange things  so that she can work with financed buyers as well.

As for you and your parents arrangement, you may want to seek the advise of an attorney to determine your agreement between you and your parents regarding the money.The HELOC is relatively a simple process.

I work for a hard money lender, that may be open to some kind of arrangement if I can propose it correctly.  

The option component gives you the option to buy or sell the option to a buyer.The biggest downside to this arrangement is that you would not retain any of the benefits of ownership (loan paydown, depreciation, etc.).

How much do you know about the previous owner and the rental arrangement they had with this tenant?

., the onus is on the contractor to make all the arrangements to get the material to the job; they can't point a finger at someone else holding them up because "you" bought the wrong/not enough material; who pays if they damage the material; if there is a material failure, the contractor isn't likely to cover the cost of their labor to repair/replace if they didn't supply the product; and so on.

actually if what you say is true it could be a respa violation, affiliate business associates have to be disclosed, it could imply kick back arrangements, big fines 

Any suggestions or opinions on this arrangement would be really appreciated! 

W/ no FC notice, you s/b able to wholesale prior to any foreclosure action....but the seller does need to include reinstatement/late fees in their closing estimates.If you can get a sub to arrangement, it provides more strategic options which can fatten the deal's profit margin.    

Doesn't sound like a good arrangement. $250 sounds like a lot for HOA fees.