I would use transnational financing to fund the first part of the transaction. 

Credit terms and availability change over time. 

We have near lawsuits multiple times per year from our flipper clients.

With rehabs you can get to significantly lower purchase prices and typically the lender will just be looking for  a100k+ ARV so that you can refinance out of the loan once rehab is completed (100k as-is value is pretty standard for DSCR loans).With rehabs experience is the biggest factor to LTV and rate so partnering up with someone for the first one or first 3 will get you significantly better terms (working in the same area can also provide benefits in terms of LTV).

Frank,I talk with out of sate investors all the time looking for the same thing.  

Closed the first investment property.

Here is a progress update from a small-time investor in Connecticut who is trying to achieve financial freedom.

Regardless of the K1 being final, any time you have 1231 gains on K1, they are "gains from passive activity" and they can be offset by losses from any other passive activity, i.e. your $125k stash.3.

I just passed my real estate exam, and now it's time to find a broker to hang my license with.

Some of the information above is a little hazy to me so my answer is based on the assumption that you currently have a 390k first mortgage at 2.99% and a 285k heloc balance on your investment property at some floating rate.