To be Free & Clear or not?

[Dave S.]

Here is the situation...I am purchasing two properties. Total between them is $183K. The seller doesnt care how i split up the purchase prices. So it got me thinking, the one property has a likelihood to appraise for the entire $183K. 

Does it make sense for me to split the purchase up to $183K for one house and the other for only a $1?

Pros: 

I get to pull one HELOC for 75% of the 2nd house and propagate to purchase more houses!

I get a lower interest rate

I save money by only doing one closing

Cons: 

When i sell the property I will owe alot of capital gains (but is it worth it??)

Other facts

The brokers that i came across have a minimum loan amount (85K)

If loan is less than 85K I would be forced to pay out of pocket OR get a loan at a higher rate (~1.5% higher) 

Thoughts??? I would like to put the contract in place today!!! Been working on a verbal for a while.

Thanks