Allocate equity based on contributions: you provide the $235K HELOC and management, while your former boss contributes renovation expertise and labor.

I am wanting a LLC for protection as well creating it separate from myself I would like to be able to build business credit and not have any based on my personal credit and I understand there is some tax savings using an LLC

Most lending is based on cashflow, not the 2% rule (although still a good rule of thumb for some types of investments), might have the most help from the group if you provided some of those details here just so it'd be easier for us to help you best. 

Based on your post and other comments, it sounds like your rehab is extensive enough that the property isn't habitable.

Lenders can have different loan options based on the property type and the amount of rehab (if any) required for the project. 

President Trump said during campaign to plan on 14 million to be deported out of 32-35 million illegal immigrants in US out of 335 mil population base.

I am based in Edmonton, Alberta.

Alternative Lenders – Look for private lenders or debt funds that focus on asset-based lending rather than borrower experience.

Our opinions should not make a difference, if you're doing your diligence properly.You'll just get realtors, or real estate professionals, from both locals promoting their area based off a keyword search for posts like this.

To communicate that a candidate doesn’t meet your qualifications without violating fair housing rules, you can simply focus on the criteria rather than the individual.