All you really have is a faith investment relying 100% on appreciation to balance your monthly losses.

But some of these people also had a savings account with a $100,000 balance in it, suggesting that they could have afforded the power.

Once your monthly income is deposited, then your 1st Lein HELOC balance drops to $85,000. 

The units had been purchased by a religious organization to use as meeting facilities.The particulars looked like this:Sale Price: $135,000Down Payment: $10,000Original Balance: $125,000Terms: 10% interest payable in 360 payments of $1,096.96 per monthRemaining Balance: $121,245.48Remaining Term: 306 monthsWe negotiated to pay $92,804 for the full purchase of the remaining 306 monthly payments.We took a full assignment and purchased the entire note payment stream from the seller.

Not to mention that having *actual cash to close* can distinguish you from wholesalers who are just looking to try and sell a contract, double-close, etc.Consequently, in my opinion, while there might not be actual money in play there are a lot of concerns that "showing a bank account with a balance of $200K+" can alleviate.Your biggest issue is that you floated $180K cash and now you would prospectively need a loan. 

Water will revert back to the owner on their taxes if the tenants leaves a balance.

I have a 30 year fixed mortgage at 4.87% , loan balance $125,000.

I bought a house for $30,000 in San Diego County using creative financing this summer (2017)Quick FinancialsPurchase - $286,000 ($30,000 cash to take over mortgage subject to)Mortgage - VA Loan @ 4.25% on year 3 of 30Mortgage Balance - $255,XXXRepairs - $10,000Total cash invested - $41,000Current Value - $390,000 ($100k equity picked up)Payment - $1752 Rented - $2250Here’s the Story… The lead hit via my website, the seller wanted out of his property, I hadn’t taken the lead seriously in February.

Essentially, this says that if you transfer or sell the Title to your property, the mortgagee (lender) as the right to call the entire principal balance due immediately.  

I think, though I don't know as this property is a new area for me, it got me an additional $50-75/mo rent and a tenant that wants to stay for a long long time.So it is a 3 year pay off for the cost, but the intangible benefit of reduced vacancy/turnover and maintenance I believe will more than pay for itself in the next year or so.There is a balance to taking it up a notch versus over improving, but striking that balance will definitely payoff over the long term.