We are still weighing my options at the moment but leaning towards having him apply for the rental, agree to the lease (assuming the credit / bg check isnt negative) before closing and if not (if he doesnt agree or the his credit profile is poor) then asking to vacate within 30 days

i originally just wanted 150k loan cash but they told me i should apply for 500k and pay off the other two loans for a better rate with themhttps://www.suntrust.com/loans/equity-line-of-credit

We have often sold them after some rehab for 2x the initial cost so when you apply the 12% note to 2x initial price your return can be very high.

i originally just wanted 150k loan cash but they told me i should apply for 500k and pay off the other two loans for a better rate with themhttps://www.suntrust.com/loans/equity-line-of-credit

Weekly stays beyond 28 days and you now have yourself a regular tenant.Same applies if you initially agree to anything more than 28 days, like accepting payment for and agreeing to let them stay a month.

The nature of all seller finance deals is the solution of the sellers problem in some way other than cash or traditional financing. 

@Sean Beksinski thanks buddy, but no honestly there's many more experienced pros on here then me I just happen to be like a sponge with information and not scared to apply it.

Would they simply apply the roughly 1/3 Debt to Income ratio regardless of the heloc facility one has in reserve? 

Basically saying only MOTHER NATURE knows what will happen when it comes to flooding and just because a property is in or out of a floodplain or more likely flood map doesn't mean that the property could never flood.

That's the nature of the beast.