I think we will always have a decent amount of foreclosures, but seems like there’s enough of us to turn those homes around rather quickly.

You are 100% on the right track. 2-1 buydowns are attractive options offered by sellers/builders to help improve monthly affordability but in all reality you aren't saving anything. 

When asked by banks  what the heloc is for -  is it ok to note other/ cash for investments ?  

Client needs the loan only for 20 to 30 days.I will be setting him up for the construction loan by that point.Construction costs are 375K and ARV is 750K.

If we do a long term rental lease we're worried the place will get destroyed by renters.

So many things can go wrong with a partner and it never surprises me how many people do dumb things (that you wouldn't guess by meeting them) that could be catastrophic in a real estate deal.

By following a structured screening process, investors and stakeholders can make informed decisions based on comprehensive evaluations of potential sponsors.

So I am turning to the BP community at large to see if anyone here has any personal recommendations?

Ratios Greater than 1.0 are preferred by most lenders.

But, I am thinking about house hacking in the near future and renting out by the room.