The owner has a first mortgage of 344K (including back payments, lawyer fees, etc) and a second HELOC of 135K.

I don't have the equity in my own home to use a HELOC(Tried this already) and I don't know any other way to raise the cash except to just save.

Refi/Heloc as "second home" how long do you have to leave vacant till it is "legal" to rent?

The financing was shut down in underwriting due to the fact it is commercial so my father has agreed to loan me the money through his heloc contingent that I pay his loan and finance once my repairs are finished.ARV=200kRepairs=20kPrice=95kRents=1600 HELOC Loan Pmt= 1000Sorry for the long explanation but beings that it is my first deal I am a little nervous and I am supposed to bring the money in tomorrow.

By helping them get a HELOC they can earn a good income from a dead assett while investing in a real estate investment company.

A lot of 2nd's are HELOC's/lines of credit.

The option then would be an HELOC or home equity line of credit.

Have you thought about a HEL or a HELOC?

One potential problem with this approach is that it cause the loan to be called in.A lot of loans, especially HELOC loans, have a clause in them that stipulates that the proceeds from the equity that you recieve as a result of the loan CAN NOT be used to purchase real estate.The reason for this is that they want a separate loan on each real estate property to be evaluate on the basis of that paticular property.So ask about any such clause when you first consult with your bank.

Only thing is, the owner took out a 75,000 heloc to make repairs, spent maybe 20,000 of it on the actual repairs, and still owes most of it.