I'm not sure there would be a lot of naysayers telling them to forego it in search of something much much better.This is only in question because of the desire to fund the downpayment out of the HELOC leaves a temporary deficit, which I have shown mathematically is more desirable than waiting 31 months to save up that down payment.  

In most cases it’s cumulative, meaning that if you don’t pay the full pref one year, you have to make up the deficit before you can participate.  

I am looking at family office to do majority of the raise and the deficit I can get from other passive investors.Thoughts?

You can't fund cash flow deficits with equity.)General advice....

So the tax and other government revenue would remain the same but spending (or inflow of money back into the economy) would be diminished which would mean that $46+ billion would be taken from the private sector economy which would again affect consumenr spending and asset prices and thereby personal and business income, lowering tax revenue, increasing our deficit even further especially in a time when lending would be subdued....http://pragcap.com/how-the-economic-machine-works-by-ray-dalioIf you are interested, here is a fantastic video that clearly explains my point.

So, the deficit will continue to rise a while longer.Add to that the housing still latent in the "shadow inventory".

@Andrew Martinez I think Macon is a good market, I also like North GA, we have a crazy deficit for rentals here and you can still buy $100k houses in some areas and do really well on cash flow.

The average diet is 2,000 calories per day.

Chicago has massive budget issues as well, despite having very high taxes, and runs unsustainable deficits every year. 

Since a mortgage is also personally guaranteed, if there is a shortfall, the lender can still sue the borrower for the deficit.