Would someone please point me to a couple of smaller firm, investor friendly GC's who understand re-hab pricing and work ethics?

Yes, in principle, its probably easier to case those if they fail to pay, but in reality, actually collecting is exceedingly difficult regardless of whether you have a SS in hand or not.

Don't know the legality or how ethical that is but essential that's what it micro wholesaling seems like.

LET ME BE clear - I feel I was working ethically and in good faith on this deal.

About 1/3 of your loan is principle.  

I am a big believer in keeping your personal expenses low (Dave Ramsey principles) which has allowed me to save quiet a bit of cash every month...For my next investment I will continue to keep my personal expenses low and use my savings to buy my next rental.

The pros of a HELOC:Line of credit up to 90%(depending on what bank used) LTV10 year interest only 20 year payback periodIf you pay principle down you can draw on the line as much as you wantLow interest ratesTax benefitCan be refinanced no money out of pocketThe cons of a HELOCBanks may charge 1 time annual feecannot sell property for 2-3 years (depending on bank) otherwise its subject to feesPain to establish (mortgage brokers dont want to do this because they dont get paid much)Just as Joe mentioned, if you prepare all the documents in advanced, banks can give you their preapproval package within 2-3 business days.Please let me know if you need any advice on whom to consider, I have a HELOC myself and did HELOCs for clients oftenBest of luck!

I get what you're saying about researching the episode to get feedback on ethical concerns regarding the content.  

NOW I'm out the cost of the title report that I ordered AND I've got an ethical dilemma on my hands.

You won't be assuming the mtg, and if you did as part of the sale, it would be treated as cash received (no difference) as far as cap gains, I believe.  50k in recapture/cap gains seems high, but maybe.Just for example's sake, sale price $250k ,let's say his current basis is $75k, after depreciation.Any interest he receives is ordinary income.So, ANY principle he receives (lump sums, payments, etc) would be divided as:30% would be return of basis-non taxable (75k/250)70% would be gain, subject to recapture and cap gains (175k/250)@Steven Hamilton II  can correct my invalid assumptions.