If they can't do this for you, consider it a blessing that you learned they are inexperienced prior to going through a full loan process with them. 

Lower of cost or market for determining the basis is also the correct way to treat a personal use asset being placed into service for business purposes.

The “limited” aspect refers to focusing on areas critical for the project at hand, rather than a full topographic survey of the entire property, which might be necessary for larger-scale developments.

They manage their business full timeI’m any case, good luck in whatever way you decide to proceed  

in addition to paying the balance of the HELOC off, you will be servicing the debt each month as you go. 

While you're talking with bank find out if your next purchase would be based on your DTI ratio or if it would be based on the debt service coverage ratio of the prospective property.  

So Im assuming even contacting the 1st is a waste of time, as they can get full payoff at FC sale, and its the 2nd (Mr Cooper/Fannie) that is needed to be shorted as they show the value $200k less than what they are owed.Any suggestions on how to do this is appreciated, really just need the 2nd to take a short.

What percentage of signed leases fulfill their full term?

I am hoping to join EXP as I have a good full time job, and am only planning to do this part-time. 

If you haven't already, keep an eye on recent Colorado legislation regarding tenant/landlord laws.