.$100,000 5 credit cards of $20k each 65,000 HELOC loan on the 4 unit 12,000 Funeral expenseWith this debt of $177,000 the numbers don't work.

Mortgage debt is looked at more favorably by fico.We got caught up a little when heloc's go cancelled/frozen in early '09.

I'd bet that the second HELOC was used to pay off the first HELOC, and then some credit cards, and then some other bills - at least that is more typical of what I have seen: Property is over-leveraged, and condition nowhere near to looking like what it would if the HELOC funds were actually used in imprioving the house.But maybe you're seeing one here that is an exception ...

Originally, I was going to have the LLC own it free and clear and get it reappraised after 90 days and try to get around 60% with a HELOC (hopefully without my name on it--just the LLC on it) to fund another SFR.

No refi at all both have 2nd HELOCs but are purchase money as they did 80/10/10 on both.

I thought okay..that sucks but maybe after a while I can go to the bank and get a HELOC.

Then I could be getting a big heloc to buy more rehabs.

Instead, keep the 1st as a Sub and make sure you have in your Sub2 addendum that the seller is NOT allowed to take out a HELOC, Instead, YOU take out a HELOC as a 2nd considering HELOC's are much easier to qualify for and it's like a checking account that you could use in the future like, buy a few more houses Sub2 or even more importantly, if you take some money out of the HELOC and store it away safely in case the 1st calls due, you can use what you put away safely as a down payment for a conventional loan paying off the 1st/HELOC.

No seconds, not HELOCs.

Was the second an HELOC, or is it purchase money.