@Eva ArnoldI like this question a lot but it is a rare few folks out there this young that would save that much capital, especially on a junior enlisted paycheck.  

On average you're moving in sophomores or juniors so you've got tenants for maybe 2-3 years which equals more turnover.

Both create a threshhold, where if your apr or points and fees exceed certain limits, you (or your loan) becomes subject to higher standards and greater restrictions and liabililties.Section 32 of RESPA kicks in on certain owner-occupied loans where the APR is more than 8% above the rate on comparable treasuries for first liens, and 10% above the rate on comparable treasuries for junior liens, when compared to treasury rates for the 15th of the month, in the month prior to when app was taken.

Short sale listing price doesn't mean squat unless it is pre-approved for all parties involved with the loan.The lender or lenders and any junior lien holders might want deficiency against the seller or sellers,to put cash in the deal,to offer up another property that has been cross collateralized etc.You are only at 41,667 a door for 800 a month rent.I highly doubt this property is performing at 90% with those prices.If it is a lender will not be taking a huge hit like that.There has to be much more to this story.This is why I say "pre-approved" is critical.The broker/agent could have listed low to suck buyers in and put in offers and then the bank counters and they get the investors up on price.

If it forecloses the HELOC gets squat as if your lucky there will be enough to pay off the first if that.If they work with you they get a payoff to release the lien interest as a short sale.The key will be what the first mortgage will or will not do and what they will allow junior lien holders to get as a payoff in a short sale.Typically they offer junior lien holders 1,000 and then the juniors want 30 cents on the dollar.It is a negotiating process of back and forth.If you are in a fast foreclosure state a first isn't going to give juniors a large chunk of the purchase price when they can foreclose and get almost the full balance owed to them.Ideal situation would be for HELOC to accpet 10 to 20 cents on the dollar and write the rest off.Before signing anything make sure the HELOC is not just releasing the lien interest for 20k but forgiving the rest of the debt in writing as well.Do not believe anything that is not in writing.I have seen banks lie through their teeth before saying they would not pursue a seller after a short sale for a deficiency and the letter was to come from another department higher up.They closed and the letter never came.

I failed to mention junior liens in my previous post, you may get stuck paying them!

About 1 out of every 7 deals I work has either an IRS lien or some other Junior Lien holder behind the second.

Junior or Community Colleges for the first two years, living at home, summers working at a local mill, school terms working for minimum wage in bars, restaurants and gas stations to get by.Parents putting their kids through college isn't a gift.

Most other liens and judgements are almost always junior to the loan you are buying and will be wiped out, as pretty much no lender will make a loan to someone with outstanding judgements (except perhaps a purchase money loan which is protected from those anyway).

When you get an ATR make sure not only the lender is listed but legal counsel, junior lien holders etc.This way you are not getting a new ATR every time you want to talk to someone.