The larger national brokers will be able to offer non-recourse through the agencies and some private lenders, but you get more strict underwriting standards, primarily the common 1:1 net worth to loan balance requirement and 10% of loan balance in liquid assets.I would budget a lot of phone time and asking what their terms are, standard underwriting standards, etc.

You cannot use a HELOC for liquid reserves as it is a liability not an asset. 

Not sure if it makes a difference, however, we also aren't building any of these offerings with a planned liquidation.

Post sale of the notes, the seller will need updates on the disposition of the assets so that they can report this to HUD.We have a liquidation model for our funds so we'll sell these to a 3rd party at foreclosure sale or take them back as REOs and sell those on the market.

Right now I absolutely do not wish to deal with tenants, in fact I don't want to deal with single family rentals either so I liquidated most of my portfolio and focusing on passive investments in syndications (multi-family and self-storage) and private lending/notes. 

I'm not a fan of using all your liquidity to pay off debt, but if you are sure you can get the LOC, I would be more interested.

Given that the Fed has obviously decided to maintain short-term interest rates close to zero (AFR) & continues to "purchase assets' or buy/sell debt securities, along with a very  aggressive injection of liquidity, it will by default force lower mortgage rates. 

Obviously, I'm looking at less volatile / more liquid. 

I have roughly $85,000 liquid and plan to purchase a condo in a desirable area of the city (lake view/Logan square area).

I definitely recommend looking at lumber liquidators if you have one near by.