The asking price for the home is 132k.OPTION 1 – Cash After Repair Value = $132,000 (estimate)Discount 80% of ARV = $ -26,400Repairs (Price per square foot) 1,190 x $5 = $ - 5,950Cash Price (seller pays closing cost) = $99,650OPTION 2 – Sandwich Lease Option – “Perfect Tenant Program” Term: Minimum 5 yearsOption Price (buyer pays closing cost): 125,500Option Consideration (non-refundable fee we pay you): + $500Monthly Rent: $950 (profit + $100 cash flow per month)Total profit (If completed full term): $132,000Note: We are the tenant-buyer, but we will sub-lease the house to another tenant-buyer.

For instance, if I acquire a property worth $500,000 and it looks like it can cashflow at $250/month, my initial total investment would be $0.

There are plenty of creative ways to fund a deal - many are legal and totally fine, but as a realtor you need to be kind of careful about how you get creative. 

Some people have leap frogged total posts past me but I focus on quality of each post. 

But I still want to ask if there are any locals there who can give me some first-hand opinion about the area before I make a decision?

I took one on my primary residence, paid no origination fees, and make no payments on it unless I use it, and only pay $70/yr maintenance fee, so if I never touch it over the life of the HELOC (10 years) I'm only out a total $700 in 10 years, which I think is reasonable for the access to the cash.

If they wont be breaking any laws or HOA issues or damaging the property by parking there, I would get an "in writing" time they will be there, and go from there.....At least they asked before hand....many tenants would just do it and then ask for forgiveness if they get caughtNext question...how often is this "friend" staying there?

I factored in realtor fees at 8% so the 30k would be the total gain. 

The cash #s are not as attractive in DFW but one must look at total returns which are composed of cash + capital appreciation.

Trustco bank hands down