Hello,Sort of new here...We have been investing and managing about 3 years now.

I'm guessing you can get away with this somehow, but what happens if you default on the new loan?

Needs new roof. 

We are new to investing, we would like to live in one unit and rent out the other three however I haven’t seen any four Plex for sale in the area and one really awful duplex.

By banking, I mean all your deposits and banking activity needs to now be done through the HELOC.

We are inclined to let them out of the lease as we'd rather find a new tenant that can afford the home. 

While duplexes seem like a great starting point, I'm also open to considering fourplexes for potential increased return.Here's my situation:Investment capital: $200,000Risk tolerance: Moderate (willing to leverage, but strategically)Experience: New investor, but I've been devouring BiggerPockets books for the past 2 years!

More chance of fraud ( There is always a new lender popping up with some crazy program and people fall for it and end up paying upfront fees, never to hear back from the lender) 3.

I'm new to RE and I'm in Colorado Springs!!!

Give them enough to cover first month's rent and deposit on a new place.3.