We would love to work together with a organization that sells the property and has services like rehab network, financing, property management. 

Hi Ben, I work with a lot of SoCal investors throughout Oregon.

Again very nice to see others pursue this avenue Yeah, it’s worked out well for me.

When filing the LLC return, it is important to ensure that these liabilities are accurately reflected on the balance sheet.However, it's essential to note that distributing the refinance proceeds among LLC members could potentially be viewed as a taxable event if there is no intent to repay these amounts to the LLC.

To find the best community bank, I would post in a local facebook group and ask which are the best local lenders to work with and ask for a specific contact.  

In evaluating seller financed notes, there is always a balance between redeeming and non-redeeming factors. 

:)I am sure this is a solvable issue with some work.

Do you understand the added complexity, work involved, and costs? 

I’m also open to alternative strategies, such as private lending or passive investments in funds, to diversify and balance risk.Does this phased approach seem reasonable given the higher HELOC rate?

$300-$400k will likely not get you even a 2-family in the best area of New Haven unless it needs a lot of work, but will get you a property in a top flight area of Hartford.