Negotiating a community-wide homeowners insurance package can be a great idea, but it has its ups and downs as you've identified.

In Gary Keller’s book, Shift, he lists 25 creative options that are most common, but barely scratch the surface:- Seller Contributions- Seller-Funded Permanent Buydown- Seller-Funded Temporary Buydown- Owner Financing- Contract For Deed- Seller Second Lease Option And Lease Purchase- Seller-Assisted Down Payment- Wraparound And Assumable Mortgage- Gift Funding- Selling And Refinancing Existing Assets- Non-Occupied Co-Borrowers- Using 401(K)- Temporary IRA Transfer- Pledged Asset Mortgage- Equity Transfer And Bridge Loan- Employer-Assisted Mortgage- Lender-Funded Buydown- Fannie Mae’s “My Community Mortgage”- Running Scenarios With Automated Underwriting Systems- Adjusting Amortization Period To Lower Payment- Adjusting Interest Rates To Cover Closing Costs- State, Province, And Local Grant Or Bond Programs- Mortgage Credit Certificate- Private LendingHe said these options barely scratch the surface.

are you potentially having the down payment included in that cash to close?

You may end up with a 75%ish LTV LoC you can use to float this fix until cash flow can pay it down.

I guess it comes down to how you connect with the person. 

Generally a HELOC is second position and might have seasoning requirements (ownership of 3-6+ mos) you would need sufficient equity to essentially 'recapture' your down payment. 

It's not going to generate an audit because it is completely normal.Talk to your CPA and wrap your head around this.

Starting in REI can already be a little nerve racking, so I recommend doing your first deal on the easiest mode you can to build your confidence and build your skill set.If I had to do it all over again, I'd buy a personal home with 3-5% down then repeat every 12-18 months.

I've already put down a significant deposit and now I'm considering leveraging a 100% loan for a second property, with a budget of up to $600k.

If that is a common occurrence then what might your collective opinion be on diving in head first versus collaborating with an experienced investor?