And they'll want you to pay off the loan pretty soon (and usually will you as the rate will probably be higher than banks) so there's that too.For this reason, we definitely prefer private lenders as they will (if you've built trust with them) often lend on the rehab too.

@Jordyn Ohsnot enough info to helpbut if you're using a HELOC for the down payment AND getting a loan, then you're probably negative cash flow given that's 100% leveragei would never do that unless i were going to refinance in the short term

Rates are high, usually in the high 8s or low 9s, and you may pay 2-4 points on the loan. 

I'm curious why you want a HELOC instead of a conventional loan in the first position.

If it is someone you know you can give them a straight return as if its a loan - can provide a lower interest rate to provide upside - it really depends on the lender and what are they concerned with and what is their risk profile. 

So we retired the sellers loan within 12 to 18 months.

At the current scenario, without knowing anything about you or your properties I will recommend either to look at a loan from your assets using DSCR loan.

SubTo is taking over someone elses loan.

@Steve Powers is correct that these were mostly originated as owner occupied loans.

Since i had capital and had access to my commercial banks for the best rates possible on vertical and horizontal loans..