I have bought REO property--ones that are already foreclosed by the bank off auction.com.  

I noticed that a number of these had banks or mortgage companies listed as interested parties.

@Aditya MainiI think a mortgage bank would be your partner in the deal and underwrite it independently.

Otherwise, it's a super deep discount to what the bank will actually want to sell the house at.

Additionally, this would give you experience in property management, however, a bank might not like the fact that you want to use a loan product (HELOC) to open up another loan product (mortgage).

So by going this route we'd have to pay approx $150 more each month on our mortgage, but we'd be cutting out the wasteful PMI and have $25K in the bank to put towards an investment.

It does appear on my bank statements.

It does appear on my bank statements.

I cant imagine any bank would lend to a brand new LLC and give a non-recourse loan.

He has been hosting a Multi-family meetup here in Charlotte and is active here on BiggerPockets.