It depends on his goals, but if he's looking for cash flow I would buy a secured first trust deed.

The more leveraged secured debt you have will impact any cash flow.As mentioned by Nicholas, the BRRRR method could help payoff the HELOC too. 

Caught the flag on the first sentence "given the loan terms verbally" - Pretty much all the "reputable" DSCR Lenders will give out a detailed term sheet / pre-approval letter / LOI (many different names but same thing) outlining terms and approvals early on in the process - the good news is that if you haven't closed yet you can still switch lenders and see if you can secure your original terms - also good news is that the appraisal, while likely ordered by the lender or broker is in your name and your property, so you can likely transfer it to the new lender

You get an estoppel from each tenant saying this is how much rent I’m paying, this is how big a security deposit I gave, here’s who pays for utilities, when my lease ends, etc etc. 

@Sam McCormackCongratulations on becoming an investor and securing your first property in Northern Kentucky.

The current owner has worked in the business since 1981, and owned it since 2007.Key features:- $25k minimum investment- 4 year timeline, projected annual IRR 35% and equity multiple 3.12- adjacent to public transport, in a suburb where there is both housing demand and limited supply.- operator has built and filled a similar development nearby- You can find pictures and numbers on some of the buildings they have built and are building here (https://lnkd.in/gfbdvtnf).- You can find a profit calculator spreadsheet here (https://lnkd.in/g-2m_vZA).

Getting pre-approved gives you a serious edge in securing deals faster.

The partner with good credit secures financing and handles financial management, while the rehab expert oversees renovation and project execution.

Pros to my current position: Secure, w2, pay is above average, benefits are stellar, schedule is somewhat flexible (can leave if I need to without penalty; vacation when I want - utilizing banked time on both), 3 miles from home, and hopefully a pension in 17 years. 

Risk Management: Securing enough funding to cover unexpected expenses during the renovation is a challenge.