We are not seeing nearly as generous for a 12 month leaseback, I have one right now, I either get term of LTV, but not both for a short term SLB.Re-tenanting is your biggest risk, what does your balance sheet look like if you have to hold it vacant for 12 months?

A Heloc can never be used as a PITI reserve, or an asset instead its a debt burden and an additional trade line on credit.A Heloc carries a higher risk when it comes to security meaning if you miss a payment even by mistake or for any reason, your scores drop, or your balances start to change your DTI or usage percentage.

We also have a HELOC with a balance from repairs and an 8% interest only rate.- Currently have around 15% LTV - so 85% equity. - The payments are now 60-90%, principal, which is great, except for tax reporting purposes in 2023 showing a profit.- 2024 almost much every possible repair imaginable was needed among the units, so the headaches and costs were compounded - now the properties are buttoned up for the most part and we'll probably show a loss for 2024 taxes.- We don't cash flow at all because we were bullish on the BRRRRs and also did some flip rehabs using some of that equity and pocketed it years ago. 

Combining these strategies often gives investors the best balance of cost, simplicity, and security.

There is a mortgage balance but the property is not distressed

This reserve amount represents roughly 2–3 years of projected repair costs, which might be a conservative approach, but it gives us a buffer for unexpected, high cost repairs when they pop up.With a larger portfolio, the reserve pool wouldn’t need to grow proportionally, as funds and repairs can be balanced across properties, allowing costs to offset each other over time.

The court ordered the tenant to pay back-owed rent plus interest. 2 years passed, and the tenant reached back asking to "clear up the balance."

If consistent cash flow and diversification appeal to you, this might offer the best blend of growth and flexibility.Ultimately, it’s about balance: if you want to prioritize appreciation with minimal hassle, the first two options shine.

If you want me to give you a quote, I'd need to know the address, 1st lien details (type of loan, balance, interest rate), credit score, income/DTI details, and target LTV (can go up to 80% CLTV on the 4plex). 

I was conflicted on DR's adamant position against leveraged debt, however, having a degree in finance and economics I believed I had well balanced approach.