Perhaps most importantly, HomeRoom carries generous liability insurance, and requires all renters to carry renter liability insurance.

The amount of money most people carry in their checking account fluctuates, but what’s ever there is called reserves.

Appraisals, Lenders and Rates : Beyond the transactions that were literally in process (sales, listings, leases, seller carries) are properties that remain amongst vacant lots.

One solution I’ve seen is closing the purchase in cash, then securing the HELOC afterward, though this carries more risk.

He didn't have to do that...you're carrying him). 

@Joel Florek will your bank let you get cash out at closing even if the seller is carrying a note? 

I can see the OP giving this a shot.. but it is risky he could end up making a few bucks and getting experience might just break even or he could take a loss.. that margin is very thin in markets that are not selling as soon as you get CO  thats been one reason we have been profitable very few homes have been carried past CO so financing cost are at a minimum.. you hold a spec home 6 months past Co and every month your losing money you will not recover.

Of course when doing the 1031 exchange your basis will carry forward into your replacement property.Where you have a potential issue is establishing your intent to hold those properties but immediately selling one or more them as soon as you have them ready. 

Unless you're working with Private Money that is going to carry the risk of your lack of experience, banks want to see experience, Net Worth and liquidity after close to consider the terms.I started with single family, four plexes, and remodel flips for a lot of years before getting into larger deals. 

Having the seller carry a second is not a problem for the first, as long as their business with you is finished and the loan has closed.