No landlord cares if their tenant thinks there is a ghost (yes tenants will tell you this), or some other reason they can’t pay rent. 

The current owner has owned for 30 yrs and needs to sell for health reasons. 

@William D Schablowsky, I'm still trying to interpret the reason for the  desired 80/20 split.  

One FIRE (Financial Independence, Retire Early) podcast expert states that 3.5% is a reasonable withdraw rate for retiring early.

The reason he mentioned a washing machine hose is because you need two female fittings, whereas a normal water hose has a female and male. 

Does this type of fee seem reasonable or negotiable?

This is the reason why I believe that its the right time to implement the BRRR method. 

The reason is they still have their primary loan and haven’t been making the payments.

One lesson I have learned over the years is that some types of debt are not bad, as long as you are earning a reasonable amount of cash flow.

@Anthony MikolichThere are several banks that do HELOCs on Investment Properties.The one that I know is East West Bank: East West BankI understand there are a lot of suggestions to do a refi, but there are two problems with that:1) That's not what the OP asked and 2) There are REAL reasons why to use a HELOC... which is why it's a Loan Product that is available.HELOCs give you another choice to use money temporarily and is better than HARD Money.I will wind up getting huge discounts on properties with an All Cash Offer.The discount I get can be upwards of $100k on a $1.5 Million property.BELIEVE ME.... it is worth it.