But I'll have to use a line credit, If I do all profits for a whole year will go to pay the line of credit and credit card back to fix it.

If you can put your money into an asset that is growing at 5-7%, and you can get a line of credit against that asset at Prime, then anything you do with that borrowed money that earns more than Prime is adding value on top of the dividend/interest crediting rate of the cash value in the policy.

Obviously, you'll need to prepare to work out the legal issues in court if the borrower defaults and refuses to cooperate. 

That would clear up your credit and the HELOC would be no problem. 

Then I bill the previous tenant if it is something they caused and credit the owner.  

Caleb Heimsoth try your local credit union.

Had our credit unit do a HELOC on the investment property, pulled out 85k then took 21k of it to use for closing cost on new property which settled today. 

I emailed them last night to let them know that I received the letter and am going to address the issues right away to show them that I’m taking it seriously and I’m cooperating.

I understand this will lower my credit score and as multiple lenders each get my credit score/report, I am concerned that it will heavily impact my credit score negatively.Are there strategies that you recommend to workaround this or is there a way to do this effectively without heavily impacting your credit score?

I initially hoped to ask the seller for a credit to fix however I am hearing that the amt of credit you can ask the seller is limited by the closings costs amount (in my case max it will be $12K) so I am not sure what to do.I am aware of the 203K option, but I am not sure I want to go that route as I am comfortable with my plans for down payment and monthly expenses currently.