PVP (including the less jumbled up blocks/areas of san pedro) is synonymous with luxury (unlike Compton and increasingly many urban areas of socal) so at least there is value added / luxury potential appeal to any multifamily you invest in, ie get as a fixer upper deal and actually hold long term for rent cashflow - as opposed to flipping(which subjects u to capital gains).

Ask for their reporting schedule and make sure the schedule is frequent enough for you and the reports are detailed enough for you.

It sounds like you may be hiding something, I would recommend you dont initiate this process as they will likely look into every aspect of your financial life for any discrepancy.Any transaction over 10k is subject to government investigation and will be flagged.

Hopefully nobody gets offended by how "green" I am to the subject haha. 

Delayed Financing ExceptionA cash-out refinance within six (6) months of a purchase transaction when no financing was obtained for the purchase transaction are allowed under the following parameters: The new loan amount is not more than the actual documented amount of the borrower’s initial investment in purchasing the property, plus the financing of closing costs, prepaid fees, and points (subject to the maximum LTV). 1.

Its not our primary area, however I do have a house on the water down there so I am there frequently and if I find the right deals I wouldn't be apposed to picking up something there as well.

It's all subjective, made up and misleading.

I would get it under an option contract subject to you having access and doing more due diligence.

Ok, I am puzzled about the Chinese Drywall problem, issue or hazard....I just discovered the subject as the topic of several posts....  

I don't know squat about NY RE, but it sounds like these sellers are trying to exclude folks using HML, and look for only a) All cash buyers or b) HELOC buyers.If you want to play in this arena, and that is what is going down, I'd suggest opening a HELOC on some other property you own with the highest maximum credit line that your equity position will allow but a $0 current balance.Offer accepted, max out the HELOC, funds arrive next day, show proof to seller.Then you would use the HML to pay off the HELOC a few weeks later, if you'd prefer that the debt be secured by the subject property.