It seems your issue is two fold, partially due to poor underlayment/uneven floor and thickness of the LVP can play into that too.

@Alex NgMost likely, income verification will be based on your tax return documents. 

The reality is at the beginning of your journey you should be happy to get on base.

This was a management and operational play.

However, the return on an investment in real estate is usually calculated from the perspective of ROI and Cash-on-Cash return, which is based on the cash flow on the deal. 

For instance, someone might find a 100k spread on a deal like this perfectly comfortable.

Yes I still paid transfer tax based off of the assed value.

DSCR loans can also have flexible seasoning, meaning you can cashout refinance quicker based on the new appraised value.

Hi Joseph,As others have mentioned, given the high interest rate on the HELOC, it would be a risky play to use the HELOC as a down payment as you'd need a way to pay this back.

Based on that math yes, you'd clear a couple hundred dollars after all debts and expenses, not the worst spot to be if you're not necessarily needing the cashflow/trying to live off of it, but instead are focusing on playing the long game.