You might not get as much cash flow with that equity as you would get if you sold and put it into say an apartment building, but with the low mortgage rate you are likely getting some pretty good principle paydown each month and it's in an area that will see good appreciation/rent growth long term. 

The whole scheme was buy a foreclosure, "sell" it back to someone that can't qualify for traditional financing with seller financing at a higher rate, once note is "performing" you can sell the note and make a lot of money. 

Understand the basics of private lendingResearch real estate marketsDetermine your investment strategy and criteria for loans, including:- Amounts- Interest rates- Repayment termsCreate legal documents with a lawyerNetwork with real estate professionalsPerform due diligence on potential borrowers and their projectsBegin with smaller loans to gain experienceMonitor your investments closelyConsider joining a private lending group for additional resourcesStay informed about real estate trends, lending practices, and legal regulations

Not that that means anything good or bad :-) But if you want high quality genuine coaching about investing in Philly and at a reasonable rate, I can  connect you with a wonderfully savvy, professional investor who does coaching.

Cap Rates in the area.

For example, if the prevailing interest rate is 7.5%, a builder could offer buyers a 5.5% rate as a way to make the purchase more affordable.

And if you have to cancel a policy for this you usually get the pro rated premium back so it pays to check and change it if you have to.

Secondly, DSCR rates are often quoted as floor rates meaning they will cost a lot upfront to get those floor rates.

Since HELOCs have a variable rate, you’re banking on rates staying the same or decreasing.

Given current interest rates, I don't want to be cashflow negative so I will likely be leaving most if not all of my renovation money in the deal.