I personally have a number of HELOCs on my properties, and as a lender with access to dozen of investor's HELOCs I can say none of them restrict the use of the HELOC, or even require a cash out letter of explanation.Credit Unions write their own rules!

The lender that I'm choosing to cash out with requires a 6-month seasoning period.

I have never heard of that, I cannot find anything about that online, and I have a friend that has been an agent for 20+ years that said Fannie Mae properties are always immediately listed.

they still require internet.

Can ideas how to make a foreclosure sale go through when there's no stove or hood (usually required for conventional loans) seller won't do any repairs or credits.

My guess is that they will require it if you are adding a 3rd unit.

Some lenders may require a second appraisal, if the value is over 20% of the initial cost. 

@Martin Madelaire a MTM agreement or verbal agreement still has the same notice requirements.

Many lenders require the funds to be used for business purpose.

@Ravi KaruturiRavi, a Project with a $10M “all in” cost will typically support a 70%-80% loan to cost (LTC).This means that you can borrow $7M-$8M which means that you will have to invest an equity infusion of $3M-$2M.More fundamentally, if you are asking a question like this, your priorities need adjusting.Raising capital from whomever, and especially from friends and family must come after you have acquired and can demonstrate the skills necessary to build a $10M ground up development.I believe that if you pursue a plan to raise the equity required that you will find it very difficult to secure bank debt without a track record and or the skills noted above.Feel free to reach out to me if you want to talk.