My biggest obstacle at the moment is coming up with the initial down payment of $125,00.00 for the bank .

I need this amount to put as a down payment on a hotel .

I'm now looking for a quality loan servicing company out here in the Bay Area, or anywhere for that matter, if they can help facilitate my payment process to the seller.

My question was if I could attain an equity line on the newly purchased property if I have no equity in it yet since I did a 3 year interest only with a ballon payment on the backend with no money down.

If the above numbers are correct then my return on the down payment/closing costs is still pretty good. 

Personally I would take the position that the full redemption payment (i.e., 120%) are the gross proceeds and the basis is whatever you paid for the tax deed, making the 20% profit a capital gain.  

My bank is offering to use my rental property which I acquired last year as collateral to lower the down payment from 20 to 10 percent.

The information available is amazing, but also very overwhelming and I am not sure where to start.I'm currently in some credit card and student loan debt and looking for advice on whether it's smarter to get more in debt to be able to start with flipping/house hacking sooner, or to continue to read for the year and a half to two years or more it will take me to get rid of my debt and save enough for a down payment.  

They’re used to making monthly rent payments to my LLC name and so would continue to make payments to the same entity, as usual, despite the LLC having changed hands

Maybe I'm wrong in this, but when I look at most opportunities, I ask myself if I could male the debt service payments if the property was 100% vacant.