If you find an actual property that looks like a homerun and would warrant a HELOC, then you can go for it without reservation.

I haven't done any deals yet, I've just started searching for a cash-flowing 2-4plex in the last couple months but I'm still about 6 months from being able to afford a 20% down payment with no cash reserves left for maintenance.Aquaculture is an interesting suggestion!

And other questionsIf I was reviewing this for one of the investors that buys SubTo deals from me, I'd want to renegotiate the down, remove the balloon, make sure my investor has 6 months of payments in reserves, make sure my investor can qualify for a refinance in the even the Due on Sale got called.I would need more answers to know if I would do the deal. 

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

If OP can lever-up while maintaining adequate reserves, he will be in better position than buying with heavy cash position.  

The numbers calculated assume 0% vacancy (but I reserve 5% for it) .

If is 65% and below LTV you won't need to provide reserves. 1.

Again, the BiggerPockets store has some books on this topic, or you can learn about it by watching podcasts, reading blogs, and interacting on the forum.

If a cash out refinance, many lenders will allow the cash out to satisfy the reserves requirement.DSCR lenders generally let you vest either individually or as an LLC.

Prepare financially by saving for down payments, improving your credit score, and setting aside emergency reserves.