I finally understand that credit card payments are exempt from needing to send 1099's.

If you take the heloc to pay off siblings, I would still offer a big "Cash Now" discount so that they get paid quick.

Consider, if the machines did start failing in the next couple years, how would a loan payment affect your cash flow?

Typically, the initial upfront for the rehab is either cash or a high interest loan (hard money or private). 

And doing 3-4 units FHA is tough unless you have a huge down payment. 

It would cash flow nicely.One item to plan for from the beginning is the exit. 

If you have a good FICO, a decent down payment and closing costs, go ahead an do the first one. 

I'd look at the closing docs for something related to the pro-ration of expenses etc and see if you have anything there that could be a clause you point to for them to cover those payments. 

Think about it: most of them are able-bodied adults who choose to live (mostly) free off the backs of others rather than contribute to society.Rent payments are usually steady, but Section 8 tenants took a lot more work upfront, throughout their tenancy and at the end of their tenancy.

I would lean into a cash out refi.