I even assumed you had to live in the property for a year before you qualify for Heloc,, but I have found that you can apply 1 month early if you sign something saying you will make subject property your owner occupied within a month,..

These are the details about our house.Purchase price: $855,000Current approx value: 1,100,000Current monthly mortgage payment: $3100 /monthProperty taxes ~ $11,500 /yrRents in the area for a similar house: $3200 - $3400Given the numbers, I understand that this would not qualify as a good rental property but given the crazy real estate market in the bay area we are worried we would not be able to purchase again should the market appreciate at the rate it has been in the past if we sell this house now and live in an apartment for a few years.

Hello,I currently have a qualified tenant that isn't employed due to illness (Does get some unemployment).

You also still qualify for the 2/5 primary residence exemption. 

Will that be enough to get qualified ?

You can do it as long as the property will qualify for bank financing.

Rent-O-Meter has the rent at $934 for that area.My strategy is to develop relationships with loan officers that have relationships with people that can afford a home but can't qualify through traditional means.

The Qualified Exchange account set up - between you and the bank and QI.When the mechanism is applied this way you neither sell or buy property officially - you "exchange" with your QI. 

This would give a definite buyer in the contractor who would now have "skin" in the game for refinancing from a bank.

This would give a definite buyer in the contractor who would now have "skin" in the game for refinancing from a bank.