If they take that money...every DC licensee is getting a $2k bill to replenish the fund. 

If I draw from those reserves to fix the roof, install new HVAC, etc then I will aim to replenish that reserve. 

It's a great way to keep growing your portfolio without constantly having to replenish your capital via a job or otherwise.

One thing will be a yearly toy fund that can be spent freely over the year and replenished once a year.

This really isn't crowdfunding or if you want to use that label it is crowdfunding for replenishing the intermediary's bridge facility.  

The alternative is a traditional amortizing bank loan with a prepayment penalty, which is not as flexible or the best fit while the owner is spending money rehabbing the property, raising rents and raising the property value and who may want to tap into that equity at the stabilization period to use for the next project (and replenish rehab out of pocket costs).The lenders can shoot holes in my attempt to explain a product that I am learning about...hopefully, I did not miss to bad.

So deal breaks down like this:Total Price : $29,850     Downpayment/Cash Invested : $1500 Amount Financed @ 6% using HELOC: $28,350 ($170/month P+I)Taxes : $125 / month     Insurance : $42 / month    Vacancy/Maintenance: $81 / monthTotal Expenses/Month (PITI + Vacancy/Maintenance) = $418Cash Flow = $282 (first 6 months PM included in purchase so no extra, after 6 mo. will be about $70 less, so closer to $200 CF)My plan is to refi the property after 6 months to get a 75% LTV cash out refinance to get a better rate and be able to replenish my HELOC for other properties/future investments.Let me know how you guys think I did on this "hopefully soon to be" first deal!

This then gets replenished from the rents the following month, and we pay the owner the rents, less any repairs we have paid for. 

Although it might be a good time to sell because of the economic climate, I think it is better to hang in there, replenish your accounts from the renovations and continue to stash the monthly income.

If the cash is used for a long term buy and hold it would definitely be better in not all but most cases to use fixed 30 year financing so you can control your "downside," cash flow risk and only focus on the upside which eliminates near 50% of the risk scenario.Heloc's might be a bit lower than a 30 year fixed if the LTV is less than 80 % of your property's market value, but the benefit of the fixed terms far outweighs the volatility and lower variable rate of the HELOC.HELOC can be great if you're doing flips since the capital can be replenished quickly as you can churn your capital in and out multiple times a year and the interest rate risk of a HELOC is not nearly as high when used in this manner.