Using a heloc as 1st mortgage really only has a major benefit if you have idol cash sitting around from your paychecks. 

And assuming a 0% return on the $200k you could have in the bank earning $10k/year if you sold. 

My thinking is that by renting to a residential care facility I can effectively utilize all the space, earn above market rent, and help provide a needed service, while avoiding tenant parking jams. 

The mortgage payment is $1,000 on each house, so you earn $500 per house or $2,000 monthly.

A lot of it has to do with location and time.If they are local owners looking at 1-2 LTR properties, I'll assist with identifying cash flowing/near cash flowing properties, assist them in the purchase as their buyers agent and assist with tenant procurement, listing, etc. but they can typically handle day to day management from there.Furnished properties, whether that be MTR or STR, are a lot more involved, as I'm sure you're aware of!

If they’re so hard pressed to preserve cash, why is the retreat in Puerto Rico?

He stated that his GF Rachel has her own corporate job earning six figures.

Earning potential and cash flow seems like it would be easier to obtain if the numbers are right.

Best of luck—sounds like a cash-flowing gem!

If a wholesaler can still profit while provided “full disclosure” and adhering to the rules and regulations of real estate licensees then they’ve earned their profit.