@Alan HaleWhat you borrow is irrelevantYou paid XYou spent YSold it for ZZ-(x+y) = gross profitIf you took out $45k and only have $23k now looks like you lost $20k+

Have you considered trying to borrow the rest from a family member or friend?

Both are occupied but borrowers want to walk away and I had someone go by both today because I had people in both markets.

@David MuscovalleyI'm only going to talk about using a HELOC for a long-term loan (i.e. to borrow equity to acquire rental houses).If you borrow equity to buy rentals, you increase your investment overhead.

Any concerns on your part as the buyer / borrower that might cause problems closing?

@Yoni RamrasThe refinance entails a ton of paperwork and verifications that could include income, cash reserves and credit.The process can take 30 days or longer depending on conditions and how fast the borrower gets their paperwork to the lender and if any conditions create new conditionsNot really the permitted plans, but to make sure the work was done in a workmanlike manner and that permits were pulled for work completed.An appraiser for the bank.  

As a borrower, thats an insanely sweet deal in my opinion if you are correct about the loan structure, because you are pretty much hedged everywhere - i.e. you'll only face minimal interest rate risk, and even then you can refi- out if the rates too high. 

This could make your future borrowing on the HELOC much more expensive.  

Because borrowers pay for appraisals, not lenders, it's not skin off of Chase's back to get a bunch of people excited about refinancing to drop mortgage insurance. - Some folks, randomly, it'll turn out that the appraisal comes in high enough to drop mortgage insurance.

Typically commercial lenders require personal guarantees or for you to act as co-borrowers along with the LLC.