It's not the same thing.If you have $130,000 in equity, I would not use any more than $65,000 on a new property and $15,000 of that should be held for reserves so you would have $50,000 for downpayment and closing costs really.Unless your rental property is new construction, you don't want to max out the equity in case of large repairs coming.

They also need to report the sale value for the state as well because in many/most places there are state/local taxes on the sale based on the sale price. 

Best of luck!

I recently closed on the purchase of 12 acres with the help of a family loan, and the farm service agency ( 1.5% for 20 years).

I wrote the above for informational purposes.

Are you one of the tenants?

One issue that I have not seen addressed, is the cost of the home, which will greatly affect your cash flow. 

I understand the inspection would affect the value of the policy but I don't see why it stops me from getting the policy.Is this normal?

Bigger Pockets is a great place for education and networking and is full of great content.I recommend that you check out the following resources:1.

hi @Alvin TaverasMortgage Broker here, i've been referring clients out to Credit Unions for their HELOCs. we have a handful of lenders that can do them, but i'm finding the juice is not worth the squeeze in the broker/ wholesale world.