You can raise capital through family, it’s actually a very common practice.

What would you do in this scenario and why?

In this scenario I personally as the PM would probably opt to not apply it towards the late fees since we didn't collect the rent, even if our PMA said we could, because I understand that sending an outstanding balance to collections has a low likelihood of success. 

Upfront fees for professional services are becoming more and more common though. 

I'm not sure anything is going to change there anytime soon unless you want to share your common space with guests and go that route, as Airbnb traditionally started as.

Pretty common strategy as I understand.Does anyone know if I'll have to quit claim it back to my personal name in order to obtain a HEL?  

Terms for the seller 2nd have generally been 5%, interest only, 5 years.I'm only considering properties under this scenario that cashflow well immediately, hence the i/o payments, in addition to having a strong value-add element.

It may be common for a home of that age to have a failed sewer lateral, but that doesn't mean you have to accept it.

@Joshua DunlapTo make a successful investment property purchase in Texas, set clear investment criteria, choose a suitable strategy, get pre-approved for financing early, build a strong local network, start small for your first investment, plan for worst-case scenarios, and work with a knowledgeable real estate agent.

Here is one of my posts that will provide answer to the most commonly asked questions.