You would want an closed end second mortgage instead of a HELOC for a long term cash use like a down payment.

Before he closed on the property I pointed out that his property taxes will significantly increase after a year when the property appraiser registers the new sale, and that insurance in Florida is going up by 20-30% a year right now.  

We're considering our options for moving forward.Numbers:Purchased for ~ $230,000 (2.5% interest)Remaining balance ~ $220,000Appreciated to ~ $400,000Cash flow is ~ $500 a month after setting aside for all reservesOptions we're considering:1- Cash out refinance- at current market rates, rough estimate is that we could access close to $100,000 in equity, but our cash flow would go to $0 or possibly negative for a period.2- Sell now - if we sell before the end of the summer, we could still qualify for living in the property for 2 out of the last 5 years for the additional tax benefits.

I don’t charge anything until the closing with all funds being escrowed by the title company/attorney.  

I recommend starting close to home so you can drive to the property.

Currently under contract for a large off-market residential property.Quick details: 4,200+ sqft 12bed / 5bath (2 kitchens) (No a flood zone)(Light - Medium rehab / rent-by-the-room play)My partner has been a PM in this community for 20+ years and is highly confident in this deal (as am I).The current issue is, we aren't confident the property can close with a bank due to a few seller complications.( ^Very long story, but if you want to hear it I will tell you haha)We're looking to over-raise about $335k ($255k purchase and $80k for the rehab).But we (and our contractors) know the rehab portion will come in a bit lower.Can anyone point me in the right direction?

My purchase price was over 20 years ago, I do not remember closing costs, have refinanced twice at least and I have been renting it for almost as long. 

I have a house close to Wichita Falls Texas and I live about 8 hours away from the property.

I may have a buyer - I have closed a few deals for flippers in Killeen.

@Sol Naim I have one property close to a church.