Im not hearing alot of Pros for this idea. sounds like its a bad idea..... why is this strategy even concidered or referenced to flippers?

I've sadly seen quite a few implode from the strain.I believe that making a good choice of a marriage partner eventually does not happen by accident.

. $425k certainly sounds low for a rehabbed 4-plex currently in Tacoma, and so I'd suspect either very bad neighborhood or perhaps some issues with that 4th unit being non-conforming.

It would have saved a lot of oversending and poor tenant choices.

That chimney should definitely get a stainless steel liner If the chimeny liners in bad shape if there even is one.

What are your experiences with leases and what makes for a good lease or a bad lease. 

Just factor in fixing the reason the basement flooded (could be easy like clogged gutters or extending the down spouts or maybe the sump pump hasn't worked because the electric is off or it could be expensive like digging around the foundation, parging the walls and then adding a french drain or could be real expensive and have a cracked foundation so you need to know) mold remediation and door replacement (if they're really bad) into the renovation figures.  

Thanks all - here was my initial strategy, and you tell me if this is a bad idea:Acquire property 1 using HELOC for downpayment and convential 30 yr loan.

It's possible it's based on a comp sale from last year that I'm aware of, but that building was in a bad area and in disrepair. 

The bad thing is you dont know if the next higher offer was $500 or 14,500 over asking.