Those that cannot weather the storm get wiped out.Having cashflow positive properties provides a margin of safety you just do not have with negative cashflow.Why are you focused on buying in your backyard? 

This creates a negative initial position.

:Quote from @Jimmy Lieu:Have tons of examples of deals that hit the 1% rule and positive cash flow.

I think there's a path to refinance that would flip me into positive cash flow, but I'm coming up short on ideas. 

Zach’s tone was very, “this is not an issue on us, it’s your criteria that renders you in this position”.

I'm curious why you want a HELOC instead of a conventional loan in the first position.

Positive Home Value Growth ForecastWhile the pace of home value appreciation is expected to moderate, Zillow forecasts a 2.8% increase in Buffalo’s home values for 2025, indicating continued market strength.In summary, Buffalo’s combination of strong job growth, relative affordability, limited housing inventory, strategic location, and positive home value forecasts solidify its status as the nation’s hottest housing market for 2025.

I have first hand experience as an investor which has been positive. 

There is now some positive cash flow (not much considering the value of the asset, but a lot considering where the initial cash flow was).  

I don't know if they still do it but if memory serves a few years ago TD Bank would do a HELOC on a rental in second position but only if it was titled in someone's personal name.