I think a heloc is a solid method to fund a flip.

@Chris Morris have ALWAYS seen bad "deals" from rookie wholesalers that really don't understand what they are doing to provide value to the industry.It's getting worse because the real estate market has recovered from the 2010 Crash, yet many are still using tactics & methods developed during this time.Everyone in the industry needs to go back and look at what was being done BEFORE 2010 and start using those methods, updating them with current technology.

@Min Zhang Nice work, Min!

Did you say that to be nice?

Instead of a traditional down payment, I would give them some money (maybe just to bring the loan back to even).The upside if taken over the loan at the current balance, with some rehab and hopefully getting the front lot back would be a nice ROI. 

Depending on how the water is getting in, there may be cheaper methods for sealing the basement walls from inside.Keep shopping until you find someone trustworthy with solutions.I would also consider going after the first contractor because they robbed you.

Nice job! 

A nice but expensive duplex on a beach or in an expensive area might be ideal, if you can swing the other half out of personal funds. 

Find Brandon's videos on YouTube for the "four square" method of analyzing homes and practice.

Sure, I could look for a higher paying job, but I was wondering if anyone has any creative short-term methods to improve my ratio.