Used equity in another property to limited by down payment to $6500, other cash put into paint and minor cosmetics How did you add value to the deal?

Without a scalable model, your business will be limited to the effort of the entrepreneur.

If you wait two years and have only used it for limited personal use then the IRS guarantees your investment intent under Rev Proc 2008-16. 

Is the trust claiming that whatever occurred, the plaintiff’s recovery is limited to the corpus of the trust?

While I overall agree with you, there is a case to be made that premiums will start to normalize:Namely, major insurers pulling out of the high risk areas like FL and CA are limiting their catastrophic events.  

A general credit line, on the other hand, could be secured by other assets or unsecured, and doesn't necessarily involve your home equity.HELOC Characteristics: - Uses your home as collateral - Usually has a lower interest rate than unsecured credit lines - Typically has a variable interest rate - Allows you to borrow up to a certain limit, repay, and borrow again during the draw period - Can be used for various purposes, including home improvements, debt consolidation, or as an emergency fund While it's possible to use a HELOC for RE investing or rehab projects, some lenders may be hesitant about this use.

Land is scarce, development is limited by resources and decade after decade the millionires are kicked out by the billionaires..truly.Anyway, that's my view, it's a long term hold view in an idyllic spot that few people will be able to attain ownership in.

With limited multifamily properties in PHX, this is a realistic route that I'd recommend considering.  

The lender may not otherwise restrict the homeowner’s use of the loan proceeds for any lawful purpose.Default and ForeclosureIf the borrower defaults on the loan, a home equity lender’s recourse is limited as compared to most other mortgages and loans.

@Vinessa EiseleInteresting negotiating skills.I have lenders who will allow seconds on DSCR loans, but the "seller financed" part is limited to 15%, whereas the borrower must bring at least 10% of their own funds to the deal.