Then, after trying to get insurance, we found out they had a claim six months before they filled out the TREC form.The property is nice but priced above market value.

Value AddThis gives you an opportunity to renovate the property and force appreciation.

Map - actDataScout  It's a .24 acre triangular parcel with what  appears to be about 42" of road frontage the Assessor believe has a market value of $950. 

Cost is always a consideration, but since this isn't a pure investment, not looking at it as cash return, cost, value of improvements, etc. 

You should also consider whether the property has the potential for value appreciation or renovations that could boost your rental earnings.

Hey Aaron,If the goal is to use the HELOC as a down payment for a DSCR loan, you will also need to factor the Prepayment penalty when you decide to cash out on the new appraised value after all renovations are completed. 

@Joseph Turner, if you're looking to buy in CA areas with high levels of appreciation, I've had clients take out a HELOC or 2nd mortgage and pay back the HELOC or 2nd with a cash out refinance once values appreciate. 

Because I value your time I wanna keep it concise1.

We are estimating we could build at least six houses for a total project value of $6.6 million.

Once we determine the rental value, we aim for a monthly payment to the seller at approximately 50% of the market rate.