I think your clients should think about this as short-term funding that they would need to pay back rather than a long-term solution for capital.

Where is the benefit to the end buyer here? 

Reno Scenerio Off Market Purchase Price - $185k ARV = $315-335kReno - $55-65kHolding - $10kClosing both ends - $25k= $335 , $315-$285 =$30-50k gain  As-IS Scenario Purchase - $185kSale Price on MLS :$225- $235kClosing both ends - $20kHolding - $4k= $235 - $209 =$16-$26k gainIn both scenerios I’ll be 1031ing it into a new investment.

The Heloc can also pose as a debt obstacle since its an open end mortgage a.k.a credit card.a mortgage is also set up over 30 years so it offers a lower rate and payment. 

Your responsibility is the DP, and the CF accumulates to pay you back the full amount of the DP. 

This has been tied up in court and does not really have an end in sight at this time.5.

I posted briefly about this back in July or August before we closed, but thought I'd write a little update because it's been an interesting ride. 

Steps: you go under contact with the owner of the property, you assign the purchase and sale agreement to the end buyer, the end buyer closes, and you get paid the difference between the agreed-upon price between you and the owner and the intended purchase price of the end buyer. 

Our end goal is to be back in Redding in the next five years. 

Consider Section 8 housing for steady, government-backed income.