The tenant doesn't want to have a 1 year lease for potential of being asked to make a move.  

I spent a month there cleaning it up and lifting heavy furniture, drywall, wool insulation, etc...

You could potentially be making payments on that cash which you aren't even using...A HELOC usually comes with a 10-year draw period that you can use when needed.

I am analyzing a potential deal where I can flip a 2 family in Massachusetts.  

As I understand it, it's the loan amount that requires the down payment not the potential market value of the property.  

@Brian Plajer Your property definitely has the potential to benefit from a cost segregation study.

Potential good news from the CBRE forecast for commercial real estate.Executive SummaryU.S.

Based on a rough analysis for a project timeline, I believe the total project can be completed in 5-7 months with the team I have available if we get involved in completing the work on the project.Deal Analysis as a whole - Actual Costs may be slightly different but estimates should be fairly closePost Construction Estimated Market Value - Lot 1: $379,000 Lot 2: $307,000 Total Estimated Market Value $686,000+- $102,000 - Cost to payoff HML & Previous Builder- $154,800 - Estimated Cost to complete House #1- $170,370 - Estimated Cost to complete House #2: Includes New Well/Septic $7500, Impact Fees $2100, Permits $1000= $427,170 - Estimated Cost to Payoff HML, Complete Construction on House #1, and Construct House #2+ $686,000 - Total Future Market Value- $20,580 - 3% Buyer Agent commissions as the current owner(Listing Agent) will be listing these properties without compensation- $2,538 - Real Estate Transfer Taxes- $1,500 - Settlement Costs Paid at Closing______________________________________________ $234,212- $27,900 - Payment to Seller for Down Payment made by seller to HML @ Origination (For her to break even)= $206,312 - Potential Return before any Interest/Fees/Taxes/EtcI've spoken to a few HM Lenders and ran rough numbers by them.

Are there any potential issues I should check in advance?

The key for me in this deal (the thing that made it a deal, really) is that it's an area of Okaloosa Island where many were ignoring the potential.