the short term is full of numerous cycles. 

Its a very creative, lucrative and rewarding career and you can scale very fast. 

Here is the thing, there are numerous repairs that  are going to have to be completed before the property is rent-able again.

New development takes quite some time without reaping the rewards.  

@Ned Carey & @Brian Gerlach I appreciate the advice and have called numerous banks.

Your denominator is $25,000 (down payment, closing costs and repairs upon acquisition)You numerator is rent less the remaining expenses ($1,400 - $963) = $437 x 12 = $5,244 I would adjust vacancy and capex to about $250 (from $160) so $347 x 12 = $4,164.Is this a SFR?

The strategy is to apply all income to the HELOC use a credit card with rewards to pay for expenses, then use the HELOC to payoff the credit card monthly.

U.S. tax code actually rewards poverty by giving tax CREDITS for being low income. 

But it is making the hair on the back of my neck stand up.The loan payment is really soft at 3.75% over 30 years, but it has a lot of provisions whereby I can't:- use the loan proceeds except for "working capital,"- can't distribute assets or make loans to myself or to any other company I have an interest in,- have to keep detailed records on use of loan proceeds and all other income and expenses, and- many other onerous provisions.Then it has civil and criminal penalties if I violate any of the numerous "hard to understand, let alone follow" loan provisions throughout the document.Please see the actual promissory note and loan authorization packet attached here and please let me know what you guys think about this:https://www.dropbox.com/s/0p7iwe68c1f4qd6/SBA%20EIDL%20Disaster%20loan%20Promissory%20note%20and%20loan%20authorization.pdf?

Of course this would mean that you would have to share the rewards with your partner.