You qualify due to their experience and then now you have that experience too.

@Hank Bank BRRRR is probably want you want to do.Buy, Renovate, Rent, Refi, Repeat.Before you go all in and either find out you don't like being a landlord or you make costly mistakes, start with just the next one.You'll have some challenges with tapping the equity in the townhouse:1) What loan amount can you qualify with your credit & income?

I have enjoyed it so far- it has helped us improve our email automations, lead magnets, and my investor on-boarding process.

Generally yes a HELOC will go off your personal finances so qualifying is generally based on your income, liabilities, and credit. 

Similarly, the sale ($575K) minus your adjusted basis determines your capital gain.You may qualify for the primary residence exclusion (up to $250K single/$500K married) if you lived there 2 of the last 5 years.

Lenders will want to know if the property is generating income and if it qualifies for a DSCR loan or traditional financing.

@Stuart UdisAll great comments, seems like putting skin in the game will be a reassuring factor for any potential investors.

And you can also buy them when they're beaten down and underpriced due to market overreactions like currently, due to rapid rise in US 10yr rate.I've read and watched multiple Good Egg offerings and they are typical of many feeder funds and to be fair like many primary GP/syndicators as well for both taking on unnecessary risks and also charging confiscatory fees, as #1 they have no skin in the game and #2 they get a big cut up front whether project fails or not, find GPs that are investing >10-15% of their own cash into every deal.good luck and sorry this happenedlooks like they are a fund of funds setting up crowdfunding to invest in other offerings.

Plus, if you aren't able to get approved with what you've got now in terms of savings, credit, etc. you can learn on what you need to qualify so you know what to be working towards. 

Once converted to a rental, repairs and improvements may qualify as deductible expenses, but pre-conversion repairs typically do not.