She was never late, but the mortgage payment was high for her, so she has now done a modification using the FHA-HAMP program to lower the mortgage payment while she is ramping up income (having been a stay at home mom for the last 15 years).  

This was effectively a 6% risk free interest rate arbitrage thats been running for close to five years now.now I'm in graduate school and get them at 6% (interest accrues immediately), I've used it for remodels and down payments. when your done with school, you can opt for the balance to convert to a 30-year Amort.

How much money will you need to make an offer on a Fix and Flip that will be funded by Hard Money and Gap Funding?

From what me and the borrower agreed, the payment in full is due within 6 weeks of borrowing the money.

We recently cashed out of a Brooklyn condo, and the equity would go way farther as a couple of down payments in better value markets.  

She told me in private that she bought the house with a low down payment of a "couple of thousand" and that she put in her pocket $140k.

Here's an example of a mortgage and Cash Flow analysis results.  20% Down payment =  $9,600, Loan amount = $38,400,  4% APR/30 years,  $183 monthly payment

I would have all my docs. run by the attorney, plus have an escrow company for collecting rent and paying the existing mortgage (be sure r.e. taxes are included with that payment also) so it doesn't fall into foreclosure.

But how do I go about paying and tracking the monthly payments to the HELOC.

I've found no fewer than 9 multi family dwellings that are ripe for the plucking but I'm so broke I can't afford a free phone call. by my estimates, these properties combined would net me $8,600 a month in revenue depending on mortgage payments. it is painfully frustrating to see these numbers and not have the knowledge to obtain the capitol to put them in my portfolio.