I want to refinance it about 12-18 months later into a bank loan. pull out money to pay off the HELOC and enough for a down on a 2nd house or duplex.

If the bank prices their debt based on the fed rate you typically see WSJ Prime + 1%.

Credit Rating/Bank Statements/Tax Returns: Specify your requirements, if important to you.Purchase Criterion: How do you define a good deal, which will be profitable for your borrower and safe for you?

I would, If in this position, take the equity in the form of a HELOC and purchase a cash flowing asset that would not only pay for itself but pay for the cost of the money while putting cash into my bank account each month. 

Banks use the Net not the gross so it’s not what you make its what you show to the IRS.

He is also giving me a bad reputation with my bank.

@Timothy Hero community banks and credit unions are the OG DSCR lenders.  

Although William Silva ghosted me for over one month, as soon as BofA contacted his bank, he blew up my phone with nasty phone calls and texts.

At least that avoids the banks closing costs right now.

Meanwhile, switch banks.