Landlords would be free to take chances on irresponsible people with bad histories. 

The lender has a duty to track their loans and recorded documents are notice of the change in ownership.The most serious problem is when a "kitchen table transaction" is used and not-recording the deed is used to intentionally hide the transfer. 

They already have a track record (good or bad) with you, so you can decide based on payment history, inspections, etc.

But after an exchange - sign the purchase documents with one pen and pick up another pen to sign the refi docs :)Another strategy you could consider is reinvesting into multiple properties, where you purchase the first property cash (ensures some security and concentrates the equity) and the second property with a mortgage.

The specialist I recommend you have is an attorney to properly draft the documents and a title company to facilitate the deal.

Thanks,James The only reason you could not keep the HELOC open is if there is something in your original loan documents saying the loan would close once it was not your primary home anymore.

When I asked for identification documents, he claimed it was too many documents for an investment of "only" $10,000.

BAM's 14 years of experience began in 2010 - their "experience" is wholly contained within one of the craziest boom real estate markets in American history.

but working with someone who is local to your market, who can show you their legal documents that they have used, introduce you to a proper title/attorney office for drafting documents...I mean, nothing is foolproof...but that route will have a significantly higher success rate. 

Quote from @Kevin Akers: Quote from @Brittany Minocchi: Can you qualify full doc (meaning with employment history, income, DTI, tax returns)?