Insurance doesn’t protect you from any part of the sale or acquisition of a property (e.x.

@Zack Wills you might use the HELOC to aid in the acquisition of a long term hold - but I wouldn't make the use "long term".

I've also used owner carry terms for acquisition by offering a decent down payment.

If you have a very clear vision for the asset, more power to you, but if it was me I would stay away and stick to my target acquisition criteria.

Value Add acquisition. 5-7 year hold.

I've used a HELOC on my primary residence numerous times to support cash offers/acquisition without messing with more cumbersome financing or partners.

With that I am hoping to get a hard money loan to assist me in executing the acquisition and rehab.

Value Add acquisition. 5-7 year hold.

I believe the summary of this comes down to one's risk tolerance level and desire for growth.Generally a larger equity position (less leverage) involves less risk in a 'high stress' situation where unforeseen events take place (either say a market correction/downswing, or large negative cash hits etc)Certainly a greater use of leverage can facilitate continued growth/acquisitions etc.

The JV agreement will state passive investor is putting up X dollars for the acquisition and rehab/build.