I’d be interested to hear what some other more experienced investors say as well. 

So let's say a seller puts their multi-family property on the market for $500,000, the tenants have the right to purchase it.

Please take what I am about to say as developmental/constructive criticism.From your analysis I see your loan amount is 100% of the purchase price.

Can someone that has used HELOCs extensively explain to me how they go about using that money either for down payments OR an emergency say a water heater OR a health issue? 

The proposed strategy: Buy an SFR -lets say a 4 bed/ 2 ba  house -1600 square feet ...subdivide interior to convert to 3bed/2 ba @1000 square feet   plus a 1bed/1ba @ 600 square feet  Jadu unit--rent out both units  ---refi ...take repair money out -repeat -longterm hold strategy Cost to do this should be much less than  converting a garage to jadu or building a detatched aduWhy is nobody talking about this?????????

I hear the news, newspapers and some TV “experts” say a recession is at the horizon.  

Now this maybe a stupid question,  but what makes say a 4 or 5 a bad cap rate? 

Let's say a property appraises for more than the agreed upon purchase price.

The way you increase your CF is by moving the assets forward.When you buy a property, and pay 20% down (say a $100k property with $20k down), that initial DP represents your equity...and the asset. 

So, Ncarey, you're saying that if I, representing my LLC, need a loan to buy, say, a duplex, I could approach a commercial lender?