The owner has purchased a property like any other real estate transaction, and they own the physical property. 

However, due to keep purchasing real estate, my DTI is high and close to 50%.

She sent me a letter from Commercial Property Advisors, Peter Harris, which stated she had approval for funds sufficient to cover the purchase price and below it listed a Wells Fargo business account showing funds in excess of the purchase price.

For an auction.com purchase in Washington you have 2 options. 

I wouldnt give any consideration to what the seller needs in order to break even in determining the purchase price.

We purchased the house about 3 months ago and are owner financing it.

Purchase price: $240,000 Cash invested: $60,000 purchased this distressed duplex using owner financing for $240K and a $60K hard money loan for renovations.

As we all know, you are really paying for the commission in the purchase price. 

If you are coming in with 235k, you probably would not need much more, if any, to make the purchase.

I've got about $525K in equity in the property, but lenders have told me that I cannot get a HELOC to access that equity for additional purchases because the duplex was financed as an investment - they have said TX law dictates that HELOC can only be used on primary residences.