The $14,000 was that cash required to secure the hard money loan?

And is it ok to keep the security deposit for lost rent?

I suggest you change the locks, give her keys, and have her buy some security cameras that she monitors through her phone.

With the long term tenant of 12 years, the security of the small return is worth the risk of the monthly cashflow.

How does it work with securing a mortgage loan under an LLC?

If you were to go with the HELOC option, at best you would be able to secure a line that brings your Loan to Value (LTV) to 85% though its typically closer to 70-75% depending on your lender.

Hope that this helps and definitely wishing you and your dad the best of luck in securing his dream home.

If it's not yet on market, see if you can explore some creative financing with the Seller that could include a Seller financing option or an extended escrow that gives you the time to secure the funds to purchase. 

Try to secure two or three that will answer when you are in the middle of a crazy situation. 

Good Morning BIGGERPOCKETS FAMILY:QUESTION: I am interested for a property that Asking price its 135k , 3 days inspection period and 3-5 k escrow deposit  ; i need to made this deposit  in 2 -3 days , my question its THE SELLER are asking FOR A PROOF OF FUNDS, that i need to got from a private lender or hard money or conventional loan , in this time the seller will be receive all the offers and just select one ; THE best OFFER FOR him; how i compete to be the first to secure the property????