So your DTI shouldn't be affected by the credit card debt

I'm not sure how your 180 day late reporting would affect the credit.

In other words, if they tell me their intention is to rent...how would that affect me potentially qualifying them as a funding source? 

A residential appraisal will definitely affect the asking price significantly (~$100k) based on comps I've pulled.My question is: what hurdles am I likely to face trying to buy a residential property from someone who believes it is commercial and worth nearly 40% more. 

I like to Buy, Rehab, Rent, Refinance, and Repeat (BRRRR).

Does me living there affect our ability to deduct legitimate rental expenses? 

Once that is property is finished and sold, I plan on paying off the HELOC, saving 100% of the profit on that sale and repeating the process until I have enough saved to purchase a buy and hold rental property.

Also on the table is an ordinance that will hold the building owner responsible for any unpaid utility bills from the tenant.I'm not sure if this will affect any of you, but the first discussion on the proposed ordinances will occur at tonight's City Council meeting.Source: http://www.journal-news.com/news/local-govt--polit...

The main difference is that instead of flipping it for the profit you COULD make, you would be borrowing against your added equity in order to get all your deposit back - to Repeat, Repeat, Repeat... 

For example, if the 50k were on a credit card, using a certain percentage of those funds has a negative affect on your DTI and credit score, I believe the same applies toward a personal line of credit as well, but does that also apply to utilizing a Heloc?