It's fairly straight forward and doesn't take long when compared to a 13.

Seems like a lot of effort for ($15000*0.03+$15000*.16/2) = $1,650.Divide $1650 by how many hours this will take, compare that to your normal day-job wage.That being said, if you want to get into private lending then it might make sense as a fairly low-risk (assuming you follow the advice of others in this thread) "learning experience," that's not crazy. 

Turnkey ROI seems good compared to what I can get in my local market (San Jose, CA). 

Utilities are in, phase one of the roads, curbs, gutters and water retention has been completed as well.I have received approval from the municipality to build the project as duplexes that will optimize cash flow and raise the number of finished units to approximately 300.I owe 1.25M and need 1.05M to finish the roads, curbs, gutters, and water retention.The first lien(1.25M) is overdue and was intended only as a bridge.The finished value of the subdivision would be 3.4M -4.5M as finished lots, depending on the comparables the appraiser uses.I have also found a lender that will lend to take the first out, but his points are high, it's not hard to get very expensive in points on a loan size like this.I am outside the Phoenix and Tucson markets in a smaller but rapidly growing area.

Instead of just saying yes or no, why not get a bid or two and show your tenants the cost vs reward and work them through their request so they understand why you do not want to do it.

My biggest question is whether an interest rate on a HELOC is comparable to the Interest rate on a 30 yr fixed.

If you'd compare markets ( Chicago to IN to TN)  and yes i know they are different... would you still invest in to Chicago area?

Use this to compare and build you set of questions to ask any turn key provider.

Now on an MLS listed deal I would make the commission offered, on an off-market deal I would want either something comparable to that, either from the Seller or Investor or a combination, or even a promise from the investor to list the rehabbed property with me.

He or She, have local MLS access of all recent comparables (comps).