@Karla Slyngstad A Delaware Statutory Trust qualifies for an exchange, and most have debt at or near 50%.In your situation, and speaking in general terms, a $400k equity investment would include a $400k debt position, satisfying $800k in an exchange.

@Steve B.Sure do. 18% cash flow positive monthly.

The other issue is that I need the seller to be in second position and most banks dont seem to like that if the second position is the seller.

Anything with extensive rehab needed to re position property up to 10M.

@Austin Gleave Congratulations on taking action so early! 

Attorney may notice of default and threatened further action.

Again, a word of caution, when you finance the downpayment with a HELOC, you are putting yourself in a highly leveraged position that may exceed the risk threshold for some people.

You turn the existing key to the open position, insert the tool, insert new key. 

To anyone reading this how hasn't taken action... find people to surround yourself with that have your same goals and drive. 

Financing was a challenge but we got lucky with the right family member in the right position at the time.