You will need to be able to carry both the loans to qualify for the purchase.* If you are moving just a short distance from the current PR and/or moving from a SFH to multi, then make sure you have very good explanation letter to convince the underwriter why they should approve this purchase as an owner occupied.With regards to the financing options, I always prefer conventional, so PMI eventually drops off.

It all depends on your specific goals and risk / pain tolerance at this point of your life. 

If they claim they never obtained it, they can claim twice the amount of the deposit against me in court.So short of obtaining a scanner to take with me to appointments or bringing duplicate copies to fill out and sign, how would you suggest I mitigate this risk?

People tend to be more aggressive (more risk with higher upside) when you've got time to make up for some mistakes and more conservative when you're older.

Caused the buyer much higher carrying costs and months of delay in securing the rehab loan to finally finish the house.

There is no risk in establishing the HELOC (assuming you one can be responsible with such a thing) - its a line of credit, not a loan.

What is your tolerance to risk?

One is through All Risks and the other is Seattle Specialty.

t and an aggrieved investor files a complaint stating that they were sold a security without proper disclosure of the risks and their money vanished. 

That is a fair amount of money to risk on a deal that may fall apart in the due diligence phase. i am glad to help, but you are in a deal way above my head. you need the help of a good attorney.