I have thought about pulling a HELOC on my moms house for roughly about 40k and using that to purchase a deal via a hard money loan to rehab, rent it out & cash-out refinance. 700+ credit score.

Insurance also won't protect you from being sued in your own name, making your personal transactions subject to civil discovery, damaging your credit score in the event of a judgement, etc., etc. 

The refinance is correct as you described except the unsecured loan was only for $33,464.34 after some credits on the closing statement from seller.

Thanks all, Still some points are not clear to me.e.g. some Company which installs shower panel & Door which includes parts and labour and they gave us invoice and we paid them using credit card or check so now do we need to issue them 1099.

The funny thing is they actually get you approved for a line of credit with 0% interest for 18 months to actually pay the cost of the program.

So when they lend you that $96k, whatever you still owed of the $82,025 you borrowed originally gets paid off, and the balance is handed to you as cash (or, credited to your account)!

I would hope you do some sort of background check besides a valid credit card.

(at least these are figures that I seen).Appraisals usually range from $500 to $1000 depending on the size of the house(at least from my experience).If they are really charging $3500 for a loan origination fee - I would shop around for a smaller bank and even some credit unions.

question is for mortgage lender... but there are loans for one year tax returns great credit and some cash in bank

I found a rental investment for $76,000. my credit score is about a 706. is it even possible to purchase?