I have been looking at local private lenders, too. 

Trying to save money by foregoing insurance is playing russian roulette.

no I have not purchased the home yet -but I’m educated and working with a realtor who understands the process.1st- you have to be a recipient of a section 8 housing choice voucher /in the program and in good standing2nd you need to be in the rental unit and in the program for a year minimum3rd you must to be in a “participating housing authority” or PHA  because not all Housing Authority’s participate in this rent voucher -to -home mortgage voucher program4th it may ( or may not) require recipient  enrolling in an additional sub program called families for Self Sufficiency ( FSS) which has a class that teaches voucher holders how to use the voucher for a mortgage payment5th I’m working with a realtor who understands the process - has used it for dozens if not hundreds of clients. it’s going to be VERY hard for anyone unfamiliar with government processes  to get through it successfully. note I’m also utilizing  first time savings plans IDA‘s and local first time homebuyer grants and a USDA 502 direct low income Rural loan. and my own funds.All aid mentioned can be “stacked” to lower mortgage & create long term affordability.  

Just be 💯 certain that you'll be able to refi that HELOC debt off when the time comes.However...At this stage in your investment career, I would URGE you not to sign up for negative cashflow in the hope that "the market" will save you.

My first deal came from the thousands of postcards that I mailed out to private note sellers in TX.

I agree with what most everyone has said, hiring a lawyer will save you money in the long run.

I financed the deal through a combination of personal savings and a conventional mortgage.

Jamie,You can also message me privately if you would like to speak further.

Do you favor a Roth IRA, high-yield savings account, or life insurance as an investment tool?

Overleveraging by paying too much for the property mixed with mixing hard money with private money for a 100%+ LTV at the beginning of the deal.