I am trying to take a loan, HELOC or Home Equity, on the equity that I currently have in an investment property, own 4 total. 

There are 4 total units (single family, duplex, & mobile home).

....all based on 400K value and also taking into account receiving 70% of total value for each option. 

Total failure. 

The only attraction I can see, the lien holder is guaranteed a total  minimum interest of 5%, ie. if they bid the rate down to 2%, and the lien gets paid off in a few months, the certificate holder still gets a minimum of 5%. 

This can be done two way:1) Don't get a loan and just pool in 20K of your own cash2) One person gets the total loan, and he/she be compensated for the recourseSome of the responsibilities can be: Funding, LLC formation, negotiation & purchase, Rehab & GC, Resale marketing

Yearly premiums are being paid upfront at settlement for a total of $1573.

Total vacancy 15 days in over 15 years. 

On the Preliminary Disclosure (Line 520 on HUD1) the total reduction amount due to seller is $638,800 (1st and 2nd Mortgages with closing costs).

A property you purchase specifically as a investment to be used exclusively and totally as a rental property is business use and must have rental property insurance coverage (landlord).One is a Home the other is a Income Investment Property.