Quote from @Jordan Kaylor: I'm new to real estate investing and have secured a HELOC on my existing home.  

$200,000 in 401K, rental mortgage payoff is $130,000.

Having said that, I think it is equally unwise to buy a property with negative cash flow let alone rent less than the mortgage.

For the mortgage you are looking at, you will be buying the mortgage on which apx 80K is due for apx 14K.

So your son is wholesaling the property then, it sounds like, and sellers are willing to sell subject to the existing mortgage to the end buyer?  

Like Devin said, double digit rates and you could still have fees similar to a first position mortgage.

At that point, the clock will restart by 5 minutes after every counter bid, until the bidding stops.With mortgage foreclosures you'll want to guarantee that the property is vacant to avoid going through a messy eviction battle.  

The net rental income should be about 65% more than the mortgage. 

So, what’s behind the divide between new and existing homes?

That being said, the vast majority of mortgage products available (primarily DSCR) to LLCs are still going to consider your personal credit in the underwriting process.