This house has a large backyard that backs up directly to the neighborhood park & is a top draw amongst our tenants.

So why not try to be a little broader to draw in a wider range of protective sellers.

My fear is that since the HELOC has been sitting dormant for 8 months with no draws or any activity that the bank may close it on me any day.

Just draw up a contract between you and the LLC for managing the property. 

I think it is fine to draw down on a HELOC for a down payment on a new property, but I would consider quickly refing out of the HELOC and into a long-term mortgage.

I am trying to figure out the best way to draw my money back out.

According to the local municipality I don’t need to change the zoning I only need a variance to split the lower unit.However, I pay an architect to draw basic plans and submit on my behalf for this type of thing.

The hard money lender funds the remaining 80% (80k) at closing and then funds the renovation costs on a draw schedule as the work is completed on the property.

If the tenant can show that they are unable to pay due to COVID (which is super vague) then they can be under another umbrella of protection and draw out staying in the unit even longer.

They loan against the total projected ARV that is confirmed by a commercial appraiser and I put down 20-25% against the initial loan and construction draw.