We used a private lender to buy the other house  because we have bad credit.

In addition to ensuring there are no legal issues clouding your ownership, that will also give you six additional months to clean up your credit score and also to establish some work history.

I paid cash and am going to refi cash out with a local credit union once it is fixed up and leased out, then buy another house with the $$$.

I am three months in to looking at properties, finding one, negotiating the deal, getting under contract, clearing inspection items and seller credit, getting the lender appraisal, etc etc.

I have thought about pulling a HELOC on my moms house for roughly about 40k and using that to purchase a deal via a hard money loan to rehab, rent it out & cash-out refinance. 700+ credit score.

Insurance also won't protect you from being sued in your own name, making your personal transactions subject to civil discovery, damaging your credit score in the event of a judgement, etc., etc. 

The refinance is correct as you described except the unsecured loan was only for $33,464.34 after some credits on the closing statement from seller.

Thanks all, Still some points are not clear to me.e.g. some Company which installs shower panel & Door which includes parts and labour and they gave us invoice and we paid them using credit card or check so now do we need to issue them 1099.

The funny thing is they actually get you approved for a line of credit with 0% interest for 18 months to actually pay the cost of the program.

So when they lend you that $96k, whatever you still owed of the $82,025 you borrowed originally gets paid off, and the balance is handed to you as cash (or, credited to your account)!