Therefore, we were borrowing a lot of OPM and investing our own capital to get it done.

My thought is that I could borrow the money to close on the deal, then get a mortgage to get my money back out if it and to pay back whoever backs the rest.

If you intent to keep growing your portfolio and want to keep borrowing you need to protect your debt to income ratio.  

If the borrower remains in possession, they can get up to $3,000 of cash at closing for moving expenses.

Not a commercial property, loan is just commercial because of the LLC borrower? 

It really depends on the risk and the amount borrowed.

If you are looking for how to find these borrowers/properties, you need to start with understanding the foreclosure process in your state.  

We are using our own funds for the purchase price and closing cost and have funds for the Rehab but would like to borrow those funds instead of strapping us.  

Are you scoping out the deals, negotiating contracts and leases, dealing with the attorneys and accountants, managing the property, finding and dealing with tenants, handling the day-to-day, keeping the books, paying the bills, taxes and insurance, managing construction, hiring, budgeting, oversight, etc if it's a new development, are you finding the lender and negotiating terms and your partners are just agreeing to be the "borrowers" or are they fully bringing the money to the table?

Getting a 1 mil LOC right off the bat would be very difficult to believe that any Bank would do that without the borrower having a long history with that particular bank and a history of having a LOC and paying it down over time.Maybe a better option is to look for a 100k line of credit that could be increased over time.