Reality will be whatever it is. 

If you study the OM numbers, this should offer a lot of value to you in understanding the realities out in the marketplace.  

Not trying to be negative, but the reality is you need a really, really good presentation to get this in front of the right commercial bank decision maker.

The reality is they don't have much recourse against you but the agent could potentially lose their NAID number and their ability to sell HUD homes

And the reality is you won't get them, statute or not.

Thanks for the eye opening reality check Nick!

Well, you may not like what I had to say, let's get to reality and follow up the right way, good luck with your possible deal and this buyer pulling your poor investment out for you. :)    

Whether or not the second property becomes reality is yet to be known, but we decided to switch over to conventional finance since the rates were still low (4.375%) then we would still have the heloc free for other opportunities.

In reality, we want to rent out the house as soon as the new one is finished and continue on as a long term rental.Has anybody been in this situation before?

I too agree with @Nicole W. that too many go straight to the LLC and feel protected while in reality a good umbrella insurance policy will meet your liability protection goals.