The Numbers-Mortgage                                $ 388 monthlyProperty Taxes                      $ 885 yrInsurance                               $ 670 yrProperty Mgmt (9%)             $ 1,080 yrMaintenance & Repairs       $ 600 yrHOA dues                               $ 400 yrCapital Expendatures           $ 720 yrVacancy (7%)                          $ 903 yrRent                                        $ 1075 monthlyTotal Cash Flow                    $ 249 monthlyLiving Expenses/Savings- The Park Model home was purchased with a HELOC @ 6% interest only on a 12yr AM from another investment property.

The Numbers-Mortgage                                $ 388 monthlyProperty Taxes                      $ 885 yrInsurance                               $ 670 yrProperty Mgmt (9%)             $ 1,080 yrMaintenance & Repairs       $ 600 yrHOA dues                               $ 400 yrCapital Expendatures           $ 720 yrVacancy (7%)                          $ 903 yrRent                                        $ 1075 monthlyTotal Cash Flow                    $ 249 monthlyLiving Expenses/Savings- The Park Model home was purchased with a HELOC @ 6% interest only on a 12yr AM from another investment property.

How would I go about using a HELOC on my house as a down payment for a rental?

Unfortunately I've just discovered that when I got a heloc on it 2 years ago the bank apparently over-valued it significantly -- almost double its current FMV.

I want to get a HELOC but I don't want to be drowning in debt if the value of my home drops 40% like in 2007-2009.

Suppose a have a large heloc on my primary residence.

I had a private money loan for 50k and was going to take a HELOC on my half for the reno)I've been racking my brain all day thinking "How can I make the numbers work?" 

Would it be faster to get a heloc?

Purchase Price: $280,000 w/ 25% downRemodeling: $15,000Mortgage note: $210,000 @ 5.25% (conventional) w/ a PITI of $1,500(Creative financing for down payment. took out a Home Equity Line of Credit, HELOC, on my first single family to use for the down payment w/ a repay of 1% of the balance owing.

I'm pretty new to real estate finance so I'm not sure if any of this info is relevant, but I figured I would throw that out there.If the proper route is a HELOC or construction loan, do you think it would be better to do that under my grandma's name (before she transfers ownership) or under my parent's name (after)?