Has anyone acquire a HELOC, where the payments during the draw period were principal plus interest?

Once all three units are rented, the cash on cash will be 10% next year, and when taxes reach the end of abatement period, in five years, cash on cash return will drop to around 6%.

The lender doesn't want to see a dramatic drop off of overtime in the last 12 months compared to the previous 12 month period.

You may have to sacrifice a portion of your CF if not all just for that period..Creative financing is a beautiful thing..Another way is a short term loan with a lien against one of your properties..Good luck

The buyer puts a 3% earnest money into escrow, the buyer has an inspection contingency period inspect 7-12days depending on house and structure of your offer, loan contingency period 10-17 days depending on lender and speed. 3-4 days before closing you and your clients do a final walk-through of the house.

In the backyard is an additional separate efficiency apartment.

It was crazy two years ago with Toyota and Liberty Mutual moving their HQs within 1-mile of each other in an 18 month period.

Yeah, no type of lender, particularly a HML, is going to make a 2nd position loan for the down payment.Also, do you know it Actually brings in that rent per month, over a year period....you will have vacancies and turnover, particularly in $600/mo units.  

With this FHA loan, you'll be giving up a lot of control to the lender, cutting your cash flow significantly, a ridiculous ~4.5% annual Mortgage Insurance payment, will be subject to annual audits and regulatory costs, and high up-front fees with long closing periods. 

They are currently doing weekly and monthly rentals (some are efficiency type units).