If you cash out equity in a property, you are "borrowing" that money from the lender.

This depends on your agreement and whether you are hypothecating the note (meaning you own the note and are borrowing against it) or doing a partial where you are selling that portion of the note and issue a collateral assignment.When i did partials I did it as a hypothecation where I kept control of the note because those who typically buy a partial are not savvy note investors and if it went into default the first call they would make would be to you.I know some who let the buyer own it and they would be calling the servicer every week asking about payment or emailing the etc. then if it did not show up they would be calling them.How you structure it is up to you, just realize there are pros and cons for both

But if a tenant defaults they have a right for due process to contest the eviction.We see people try and do this with having a borrower on seller finance sign the deed back over to the lender and if they miss a payment the lender can record the deed back into their name.

My question is should I take the money I have and pay off the Heloc and then when everything is sorted out borrow the money for the building, or just keep making payments and wait it out?

They wrote up the LOI as a purchase with rehab with the designated rehab money going to the borrower for his cash out request.

A HELOC works like a credit card—you can borrow, repay, and borrow again, making it flexible for ongoing projects like flipping or renovations.

DSCR lenders qualify borrowers based on the property’s income rather than personal income (like W-2s or tax returns).

I’m ok leveraging and borrowing money to get them.

If you cash out equity in a property, you are "borrowing" that money from the lender.

If you had $25k to spend (possibly up to 35-40 if I borrowed a bit), what would you be looking for?