In Texas you won't have such great issues as that, but who you work with will probably be a trail and error venture.

Use the last 12 months (trailing 12) of actual numbers.

Can you provide a crystal clear paper trail that the heloc was used to buy that property and only that property and was not used for any other purpose?

If you wait until the property is in contract you might find out that your underwriting that formed the basis for your offer price was constructed with inappropriate assumptions.Before I make an offer I send my lender the rent roll and trailing 12 month income statement along with details on the property and ask for a debt grid (basically a table of potential loan scenarios) so I can verify (and modify, if necessary) my debt assumptions in my underwriting before deciding on a strike price. 

Growing up I would summer in Lake City, so we often roller skated the trail to Kenmore or spent the day at the little beaches.  

You've treated it as two separate probably better to continue that with the paper trail you've built. 

If the market is dropping by 1 percent a month then it might not be a good idea to lease option as if they don't buy you now have to sell for a lower price.If trends show going up then you could get more in the future if they default.A local broker should be able to show you a trailing 12 month to 3 month status report on similar sold's to give you a history.

So here is the deal;Built in 2005close to schools, hospital, and downtown (which is blowing up due to new regional trail and lots of Walmart money)$43,800 gross income$9600 expenses based on trash, water, insurance guesses on my part.

I believe the KOA in town charges $100+ per night and the thousand trails out in Plain is ~ $60 for non-members as a reference.  

My investors and I have had the greatest success BRRRRing outside of the city limits in sub markets like Concord, Kannapolis, Gastonia, Indian Trail/Monroe area.