You could approach her with a sence of concern saying she needs to do all she can to protect her new home as well as your collateral.

During the boom, groups of mortgage were assembled into a "collateralized mortgage obligation".

If i had 200k line of credit available from my other properties for collateral could i use that as a 20% down payment?

The bank won't have to approve your purchase at all, since they are already collateralized with your residence. 

Buy it cash, then you could leverage or post that collateral to buy your next property at a way lower rate.

Will some hard money lender cross collateralize in lieu of skin in the game?

So here are my future numbers:  Address Type Sq Ft Rent 4102 2 bed 1 bath 945 $800.00 4102 -A 2 bed 1 bath 945 $800.00 4102 -B 2 bed 1 bath 945 $800.00 4102 - C 2 bed 1 bath 945 $800.00 4106 A 3 bed 1 bath 945 $800.00 4106 B 3 bed 1 bath 945 $800.00 4110 3 bed 1 bath 945 $800.00 4110 A 3 bed 1 bath 945 $800.00 4110 B 3 bed 1 bath 945 $800.00 4110 C 3 bed 1 bath 945 $800.00 Total 9450 $8,000.00 Income Rental Income $96,000.00 Total Income $96,000.00 Expense Utilities $2,000.00 Water/Sewer $3,000.00 Taxes $4,000.00 Management Fee (8%) $7,680.00 Home Insurance (both) $4,000.00 Vacancy (7%) $6,720.00 mtg Total Expenses   $27,400.00 Net Operating Income $68,600.00 I am getting hard money loan with these terms: LOAN AMOUNT: 80% of the purchase price and 80% of construction costs COLLATERAL: 1st DOT on subject propertyTERMS OF LOAN: Type: Multiple advance loanLength of Term: 270 days (looking to extend this to 12 months)Rate: 10% per annum with interest paid monthly Loan Fee: 2% of loan amount paid at closing by BorrowerDoc Fee: NonePrepayment Penalty: NoneBorrower Down Payment: 20% of purchase price and 20% of construction costs (can be held at a security deposit in lieu of a downpayment, in which case the loan amount will be 100% of the purchase price & construction costs)APPRAISAL REQUIREMENT: Approved appraisal required to indicate the 'As-Is' Value of the subject property to be at least equal to the purchase price and 'As Complete' Value of at least 70% Loan-to-Value, paid for by BorrowerGENERAL REQUIREMENTS: Review and approval of Borrower's itemized construction budgetConstruction funds to be advanced in draws as requested by Borrower according to % completion, approved 3rd party inspection company will inspect property at time of each draw request, $150 fee per draw/inspection, detailed instructions attachedReview and approval of Purchase ContractReview and approval of Borrower’s brief description of experience, current credit report (Authorization Form attached), proof of funds, last 2 years tax returns, W-2’s and pay stubs and additional info as requested by LenderAcceptable drive-by inspection of property by LenderIndividual guarantee required if Borrower is a corporation, LLC, partnership, etc.Interest payments shall be paid to Lender through automatic payment service (auto debt)Title insurance and property insurance acceptable to Lender paid by BorrowerOther documentation and information may be required as determined necessary by LenderMy end goal here is to buy and hold with the BRRR strategy to get most of my capital investment funds out.  

Ok, let’s say I use the home as collateral and let’s say I put down 75% of that $200,000 ($150,000) and finance the rest of about $50,000.

I can't wholesale a property without full disclosure of the situation and my MAO was under 250K.I explained why.Regardless of which approach they take to selling this unwanted inheritance (with no equity, owing over 300K, and their own property as collateral)--either selling below ARV and refinancing their arm loan to release their property; or having an agent put it on the market--they're still going to owe a good amount (on the home to to the agent) after the sale.

The idea of having more than one mortgage with my measly pittance of a paycheck as the only means of covering everything terrifies me.But, I'm guessing that to qualify for the HELOC, I would need great credit, collateral or some money put away.