It's great to be among so many experienced professionals.

Sounds like a good choice then to do the HELOC, especially if you are going to make it a rental in the future and a HELOC will be harder to come by once it's an investment property.

A set of two multifamily properties are being liquidated and sold near me and it’s about $2M before any possible discount/negotiations with the owner.

Bc of this seems like a lot of risk is involved and no one seems to be talking about it.

I am in the early stages of developing a program to help people looking for raising private capital. 

Many of the posts seem to be questions about something that already happened, or questions about whether or not some particular action is ethical. 

Any assistance or guidance would be highly appreciated.

Thanks for the tax advice as well.

I would think that if the mortgage was recorded properly, it will simply be paid off.This is a question that you probably should have asked of the title company / lawyer before going under contract. 

VA doesn't allow this so the moneys to be paid are added to the project.