Some examples of restrictions might include: only a small number of units can actively be rented at any one time or... owner of the unit needs to have lived in the unit for two years after purchase before they can rent it out etc.

Purchase price: $120,000 Cash invested: $12,000 My old residence, I moved to a different home to get better financing options to make this one a rental.

Mortgage Buyer: It's true that some buyers who need mortgage financing may prefer properties with ALTA policies, which provide more comprehensive coverage.Potential Buyer Pool: While a CLTA policy might not deter all mortgage lenders, it could potentially limit the pool of buyers who are eligible for certain types of loans or who may prefer the broader protection of an ALTA policy.Recommendations:Discuss with Title Company: Engage further with Chicago Title or another title company to understand the specific reasons why they are offering a CLTA policy instead of an ALTA policy.

Not only that but you are going to carry a Heloc in a 2nd lien position and you will not be able to pull out more cash unless you do a cash out refinance to pay off the previous Heloc and take out more cash.85% of the home owners who take out a Heloc refinance in 3-5 years so it makes more sense to simply do a COR and avoid the future closing costs.

Find something you can live in and finance with low money down and can rent out the other sides, or rooms, and that you can also add value to. 

You are taking equity away from your home and getting back financing.

How did you finance this deal?

Ensure you perform thorough due diligence, understand the auction process, and have financing ready if needed.

I have an extensive network of properties and being a licensed realtor myself I have access to things that aren't brought to market How did you finance this deal?

If the owner wants to supply materials its his right.