Can I take out a HELOC/somehow leverage to pull cash out for a down payment on another property?

We sold for $1,218,000 cash (15 offers, 5 days on the market, and got a cash buyer that was going to live there and make it their own home for their family).

Purchase price: $252,000 Cash invested: $25,000 Brick house, 4 bedroom, 2.5 Bath How did you find this deal and how did you negotiate it?

The difference is that he will not be making any payments on that cash during the build. 

I have a rental property that I paid cash for about 8 months ago.

Option 1:30 Year FixedLoan Amount $202,500.00LTV 75%Discount Points %0.00Prepayment Penalty (3/2/1)Interest Rate % 8.225Origination Fee % 0.00Underwriting Fee $1,645.00Monthly Mortgage Payments $2,018.76Broker Fee % 1.25Cash From Borrower $78,081.01Option 2:5/6 ARMLoan Amount $202,500.00LTV 75%Discount Points %0.00Prepayment Penalty (3/2/1)Interest Rate % 8.025Origination Fee % 0.00Underwriting Fee $1,645.00Monthly Mortgage Payments $1,990.40Broker Fee % 1.25Cash From Borrower $78,052.65I'm not sure what credit score is being used to qualify BUT this looks to be inline with the current market rates for a 75% LTV cash out on an invest property.

It almost look like you a little or negative cash flow and look at tax benefit to justify keeping it. 

Based on the numbers you provided, your cost of capital is higher than your best case cash yield (cap rate).

The barrier is the additional complexity - now you are operating two sets of books, and filing two tax returns, and have more operating agreements, more state registrations, etc, need to manage cash better, need to keep in constant mind that your rents need to be a supportable FMV, which may require getting third party certification on your rents so that in the event of an IRS audit, what you have done is supported.In short...the size of the project, and the taxable income, need to be of enough scope to make all the additional costs and annoyances worth it. 

Purchase price: $235,000 Cash invested: $230,000 Sale price: $595,000 Property was a 3/2.