I agree with the others.

I get the gist of this but not completely sure how it works out also would it be smart to use a private money lender for gap funding in order to come with the capital needed to get approved for the fix and flip funding?

How old is the video?

Have the loan officer you are talking to model out both, so that you know you can close on the multi fam once you close on the HELOC.

I found the property, handled the majority of the closing process, and am going to be the property manager.

I have a house that will go on the market in January. 

If you have the income, buy as big of a place as you can afford (like a quadplex).

(I'm also a real estate agent)In 1 year from now I have option to buy the property for the existing loan ($376,000 in one year) plus $45,000 directly to the seller.

Their lot is small; fenced in in the back yard. 

If the seller gave instructions to his agent to not present any offers under full asking price, then the agent is obeying the wishes of his principal.Sounds like you can’t afford the property.