I have done a flip before and rehabbed some rental properties so I am not completely new to it. 

After completion of each phase, I will refinance through a local bank.

Main problem is, there is what looks like 1-2 feet of still dark water sitting in the basement ( completely concrete unfinished basement no drywall or flooring).

If not, then if you have a complete and revealing walk-through video, along with still pictures, you likely have this landlord where you want them. 

I am trying to figure out what the best thing to do for a friend is in the situation outlined below:Home Value $570kowed 1st mort $496k (current loan was modified and principal reduction completed for $100k reallocated in form of balloon payment at end of loan term)no 2ndarrears $30kIn process of going through bankruptcy, however, want to complete a lease with option to buy. 

We are rehabbing a property and will refinance afterwards to complete the BRRRR. 

I don't think it will be a complete downturn but it will slow possibly to stagnation.

Typically that can be done by phone, but occasionally it can be handy to belong to an investor club where someone local can drop by to squeeze the information out of a difficult source.The critical data for equity investments is primarily vacancy increases and rental income drops.

My end goal is to obtain a HELOC to aid my start in RE investing.My question is this, knowing that different loan options have different requirements, interest and closing costs, what is the best path to financing the garage now and getting a HELOC after completion?

Since it just passed this month, no one would have completed anything yet.