No matter which direction you go, being clear on your expectations up front and having "quality review" conversations at pre-determined times are a boon for your VA relationship and their productivity towards your goals.Good luck!

Preferred equity will generally have a hurdle rate--which means that the preferred equity holders must achieve a predetermined return before common equity holders get paid.

The Heloc FHA sets a limit on the line of equity that you can take (it is predetermined from the lender).  

If so, you may have to wait their pre-determined seasoning period before you can use the second property's income into the equation.Also, how much ADDITIONAL equity do you have in the second one other than the required say 25% deposit?

You would be paid back plus a predetermined interest rate.

Based on a set of predetermined criteria you have set earlier they also give you one of three recommendations: accept, accept with conditions or denie.

It's helpful to have a specific purpose for the Meetup with an agenda planned and a date, time, and location predetermined.  

This is not being too cautious it is following a predetermined standard.

Regardless, it sound like you now have a mess and it is time to speak to an attorney about how to unwind things.A "lease option" is not one thing, but two things:A lease - as you would have between any landlord and tenant; andAn option contract to purchase the property at a pre-determined price within a pre-determined time frame.  

Most of what I see involves a fixed rate that switches to variable at about 5 yrs and caps at a predetermined rate, but you'll want to make sure that language is in your term sheet if that's what you want.