I'm a few days from closing and when the title company sent out the settlement sheet with the security deposits and prorated rents as a credit to me from the seller my bank went crazy.First they said I need an addendum stating that the seller is crediting me.Then they said I need an addendum nulling that addendum because the seller can't give me that as a credit.

Consider obtaining a Home Equity Line of Credit (HELOC).

If your city has these laws, I would find a way to check each month to see that your tenant is paying those utilities - checking the account online? 

It is important to have a long-term perspective that takes diversity, scalability, and portfolio development into account.

Lastly, if there is imputed equity, some lenders will give you credit for this but usually requires a story, and not merely being purchased well.

It just can't be recorded unless the water account is settled.

@Samuel Metcalf- Most HELOC lenders  only lend on primary homes ...the  few lenders that do HELOCS on  rentals will likely have a low  CLTV   ( and a high margin over prime  which will lead to a rate in double digits ) .. check  with the banks / credit union located close to the property  and  also maybe there will be some feedback on this thread  pointing towards lendign sources that might work 

my accountant doesn't seem to think its possible

@Corby Goade i deff understand a home equity loan and line of credit and would actually RATHER do then then the cash out refinance because sooner or later the Pmi will go away and my monthly payment will drop And I will keep my 3.75 rate but I will be paying more money with the holc because it’s still at a higher intrest rate then the cash out refinance 

Has anyone used a business line of credit to put money down on a hard money loan to buy a flip?