@John O'Leary What about being listed as "Additional Insured' on the GCs policy?

Either way, just get their insurance and have yourself/company added as additional insured.

These are investment/rental specific mortgage products that don’t take into consideration, your income, or the debt on any other property you currently own.

The policy covers the existing structure (normally at Actual Cash Value - rebuilding less depreciation) and the additions being added.Remember, if the Reno Builders Risk does not cover Liability, you should get a sepparate coverage for that.  

Additionally, in terms of leverage, how much does the 16-unit cost? 

When we purchased this property, it was run down and had major issues to fix and there was an additional .34 acre parcel of land included with the purchase that is located next door.

Yes, the HELOC payment will go into your debt to income calculation but so will the rental income you are bringing on the property you just purchased.

Eastside tends to favor appreciation more so, obviously in addition to rental income.

Based on what I read your investment was essentially an unsecured debt for the company which invested in secured debt.

They will look at your debt-to-income, credit, income history, etc.