If the only money you make is because you manage this yourself, then the money you invest in the property is earning you ZERO.

My rationale is that I would rather own the property on paper vice outright, i.e. have the cash in safer alt. investments as you call it to pay off the loan, especially if the alt. inv. earns more than the cost of the loan.

They are earning their 10%.

If you’re sick of tax-induced headaches and want to learn when and why to defer earnings, read this interesting article: http://taxes.about.com/od/taxplanning/qt/year_end_tips.htm

In order for it to work for the seller, simply feel them out via friendly discussion about their life goals/plan/situation.Examples of seller situations:  -  The seller may need to pay off a large medical bill (make your monthly payments equal to the bill)- The seller may be retiring (suggest that your monthly payments would be better than a lump sum that earns a low interest rate sitting in the bank... and also reduced capital gains tax).- The seller may want to buy some "toys" ie. new car, vacation, etc.  

As a side note I have great credit, solid debt to income, and earn good money on a W-2 job...securing the HELOC is not the concern - it's getting creative to secure ENOUGH of a HELOC.

Like anything it takes awhile to get established and start earning trust for your business in a community.

Just a quick note.. the property you buy is in the condition as when you purchase,, you do walk thru right after and do a condition check sheet, So you then  have basis of what you can charge for AFTER that for any damages.. the conditon of the unit at your possession is what your buying,, so prior damages aren't something you can charge for.Ask in your purchase agreement building delivered empty.. would be best way, if you need to show it's income earning for your purchase with your bank,, then accept as is and do non-renewal as soon as you can get started with that process.. but be clear the new landlord must not change any lease terms with current tenants, you want them only on month to month terms for now. 

Would the judgement be against future earnings?

., HUD will state that the broker has a fee for underwriting fee, when in fact brokers have no underwriting fee);Itemizing duplicate services and charging separately for them;Misinforming the prospective homebuyer that credit insurance is required and/or failing to disclose to the buyer that they are earning a commission on the insurance;Mandatory arbitration clauses;Falsely identifying loans as lines of credit or open ended mortgages;Forced placed homeowners insurance (lender falsely claims that homeowner does not have insurance and then gets an undisclosed commission for selling it to them);Repeated refinancing (flipping);Daily interest when payments are late;Excessive prepayment penalties;Foreclosure abuses; andHome improvement scams.A range of state and federal law of laws are available to help attorneys address dismantle the harm wrought by predatory lending practices.