I'm not sure how much that will draw away from Airbnb/VRBO where every home is unique.

Which market are you currently investing in? Elderly housing? Trailer parks? Student Rentals? A Class homes? B class homes? C class? D Class? War Zones? Section 8? Ex-convict housing? Foreign exchange housing? Air Bnb...

Ideally you could BRRR into longer-term debt and repay the HELOC. 

Would he repay that amount now with the new damage deposit?

A lot of my clients applied for and received Obamacare subsidies, only to learn at tax time that they did not qualify and now have to repay thousands of dollars for what they thought was a cheap government insurance.A popular alternative to traditional health insurance is a ministry-sponsored health-cost sharing plans.

Doing this can have some unique benefits. 

You lend the money in good faith, and I repay it in good faith.

Not concerned as much with whether this is a good idea/the risks involved because the situation I'm looking at is very unique.

I also had my Realtor assign me back her side of the commissions so my out of pocket was actually lower but that is unique.

I am a little bit worried about the two mortgages I would have: the FHA 30 year fixed and the repayable second mortgage covering the down payment to result in 100% mortgage financing.