There are two distinctly different collection strategies you can pursue:1) Collections Company: there are several that ALL they do is pester the debtor for payment with calls, texts, emails, letters, etc.2) Collections Attorneys: they will get a money judgment for balance owed and then pursue garnishment as necessary - including garnishing any state tax refund (if the state allows).Both will take a percentage of what they collect.

Sure there are people who have done it but like Joe mentioned above is why your rate on HELOC is probably higher than your first mortgage so you'd only do it if your balance is really low and near the end of your term anyway so you're just getting it paid off quicker (like the last 1-3 years of payments left) becaues you want to get ride of the monthly payment and improve your cashflow now versus later.

Hi Austin,I would recommend you consult a Broker that specializes in buying and selling profitable businesses.From my understanding balance sheet is key in the due diligence process.

I had one were my PM calls me its in INDY cold winter they just had baby cant  afford the rent and heat just take no payment for 2 months then they will add the balance any pay it off.. well of course after 2 months they just left  LOL..

$230k Purchase Price$225k Balance$25k+- in renovation materials.

If I let them leave with a balance I will never get paid. 

Make sure you have funds set aside for an emergency, if you have personal debt, try to eliminate as much as possible, understand what your personal balance sheet looks like in regards to monthly cash flow and net worth.Investing in real estate is investing in a business, and you need to have a good understanding of your financial picture before you begin to buy a business.I would then focus on what niche you want to start with.  

I am replacing the balances and pivot shoe locks. 

The retail buyer obviously can own the property in the end if he pays off the balance, wholesaler has nothing to do with it once he assigns the contract, but we are talking about transaction, everything that occurs before CLOSING.

For now, enjoy the project, but consider transitioning to a vacation rental later for consistent income.Overall strategy..Balancing multiple properties is challenging, so leveraging property management for the rentals would be wise.