If I were to make the home a land transfer contract, does this still apply? 

We had been looking around the area for a while trying to buy some land zoned multi family to build on and his agent mentioned this while they were out looking at a plot one day.

I low balled them at $20,000.00 and they informed me that had already turned down 25k offers.

They might not be home runs but base hits can win ball games.I just finished a BRRRR on a home I found on MLS.

Because there is no zoning in the city, and land for miles in each direction, New Development is less restrictive than other cities.Additionally, almost 100,000 residences were flooded in 2017 and a lot of SF homes you’ll look at (all over town) are rehabbed flood homes with potentially higher insurance costs and possibly less appreciation over the next few years due to market stigma.  

Nobody has a crystal ball, however, so the best thing to do is be conservative in your numbers and adhere to your criteria.

Once they have purchased the property we move that property into a Land Trust, which does flag the transfer like moving the property into an LLC might.

Does anyone have any suggestions for me on how to approach getting a HELOC for my primary residence while renting out portions of my land to offset my DTI?

@Timothy Doenges Yes I would do this deal but I would obviously low ball even more if I could.

., $88,333/unit) After Repair Value: $325,000 Purchase Costs: $7,950 Rehab Costs: $0 Down Payment: $9,275 Total Cash Needed: $17,225** Financing ** Loan Type: Amortizing Loan Amount: $255,725 Loan to Value: 96.5% Loan Term: 30 Years Interest Rate: 5.25% Monthly Payment: $1,412** Cash Flow (Monthly) ** Rent: $2,750 Vacancy: -$275 (10%) Expenses: -$1,348 (54.5%) NOI: $1,127 ($376/unit) Mortgage Payment: -$1,412 Cash Flow: -$285 (-$95/unit)** Returns & Ratios ** Cap Rate (Purchase): 5.1% Cap Rate (Market Value): 4.2% Cash on Cash Return: -19.9% Return on Investment: 243.2% Return on Equity: -4.1%EXAMPLE B: All units rented** Unit Information ** Total Units: 3 Total Square Footage: 0 1 Unit: 3/1 (0 sq. ft., $1,500 Rent Per Month) 1 Unit: 2/1 (0 sq. ft., $1,250 Rent Per Month) 1 Unit: 2/1 (0 sq. ft., $1,250 Rent Per Month)** Purchase & Rehab ** Purchase Price: $265,000 ($0/sq. ft., $88,333/unit) After Repair Value: $325,000 Purchase Costs: $7,950 Rehab Costs: $0 Down Payment: $9,275 Total Cash Needed: $17,225** Financing ** Loan Type: Amortizing Loan Amount: $255,725 Loan to Value: 96.5% Loan Term: 30 Years Interest Rate: 5.25% Monthly Payment: $1,412** Cash Flow (Monthly) ** Rent: $4,000 Vacancy: -$400 (10%) Expenses: -$1,648 (45.8%) NOI: $1,952 ($651/unit) Mortgage Payment: -$1,412 Cash Flow: $540 ($180/unit)** Returns & Ratios ** Cap Rate (Purchase): 8.8% Cap Rate (Market Value): 7.2% Cash on Cash Return: 37.6% Return on Investment: 300.7% Return on Equity: 7.8%