Now understanding it better, my preference would be to do the HELOC (like you imagined) on your primary, take the cash, buy something cash, cashout refi, and pay back the HELOC until you find another deal.I only give cash offers.

I imagine they are all similar.

I have never been on a forum or even a website of this style other than CopyChief (Imagine BP but for Copywriting). 

I would imagine imagine now since the HOA will be in considerable debt the value of the property will decrease proportionately to the increase in the monthly due.

@Horacio Gutierrez I can’t say for sure but I can’t imagine getting a rental for more then 200k cash flowing well

I'm imagining the folks upstairs not paying and creating all kinds of drama with the folks downstairs....Seems like it "could" work but there are lots of details to work out. 

Perhaps lending has changed since I sold in 2008 (imagine that the mortgage industry changes after the meltdown) Even my underwriters has to put that vacancy factor in.

@Irina Belkofer - you bring up a good point about the previous criminal records - it is important to screen tenants and know who is renting the property.So sad - I can't imagine what the kids are going through, and his poor wife.

@Darius HowellI’m not sure I understand your cap rate argument completely but I imagine like most sellers he wants at least what market is selling for.The first thing I would do is call a commercial broker in your area and see what similar assets in a mile to 3 mile radius have traded for in last 6 months.That’s your base.Now figure out what cap rate the property could be at after stabilization.

Imagine the type of person she must be and the problems she is likely to present....NO thanks.