If they think you are educated and intelligent than "you're not a fit for this" comes into play. 

Most investors I know are intelligent enough to know whether you know what you're doing.

If you don't, you're going to end up with a random mismash of investments that are most likely not ideal for your risk profile.When you do that, then you can look at the sponsor intelligently.

I know intelligent people who have been predicting a recession since 2014, shorting stocks.

You increase your chances of failure by moving too quickly.Why can't you find a place to rent, learn the local market, develop relationships with intelligent and honest individuals? 

(sorry for those caps, I may be channeling James for a minute :lol: ) The runup from 2000 to 2006 was artificial and unsustainable.

I think you'll get a better rate, and the mortgage will force you to pay off principle monthly where the HELOC is typically interest only.You will also be artificially lowering your cost of ownership by having a I/O HELOC on the house, causing you to think it cash flows better than it really does.

I don't like the idea of balloons; it sets up an artificial date that a huge amount has to be called due and payable and the person may not be in a financial position to pay it off by then.If the person was able to refinance at some point in the future, that would be great for them. 

Also be careful there are some sold prices that are artificial.

You can't go through life needing to pay for a shot in the arm because you lack motivation or intelligence, if they can't motivate themselves, real estate is not for them.