Whenever possible (based on life circumstance), I recommend house hacking and while house hacking, I’ve been able to BRRRR (or flip if I have to) because of not having to pay a mortgage and thus accruing the funds to do so.

However the idea is you can accrue that debt at any moment so the lender has to assume the worst.

Out of curiosity, why are you against 1031?

@Chris Levarek appreciate it, and having them in a Podcast is a great idea, even for my own curiosity :) Such an interesting business structure, I'd have to learn the skeleton first.

I'm not sure how that much tax accrued without the property being auctioned off by now.

Here is an (extensive) example and as Chris says above, they can all be different: LOAN # Street CITY STATE ZIP ORIG BAL CURR BAL Deferred Balance Total Balance Accrued Interest Escrow Balance Corporate Advances Total Legal Balance FIXED/ARM DESC.

HELOC is for short term money, cash out refi for long term.HELOCs have lower closing costs, higher variable interest rate, and interest only accrues when you actually draw funds.Cash out refinances will typically have higher closing costs, a lower fixed rate will be available, and interest starts accruing right away (even if it takes you 10 months to find your next property).A common pattern if you may find a deal in a month, or 10 months, not really sure, is to1) Get any refinancing out of the way, you have an FHA loan so you should certainly drop that off.2) Get the HELOC, leave the balance at $0 so you aren't paying interest.3) Buy the rental.4) Come back to the property with the HELOC and see if it makes sense to cash out refi and consolidate the 1st and 2nd into 1 30YF.If you're determined to score that deal within the next 90ish days, skipping right to a cash out refinance is probably best.

-the seller should collateralize the note with the property (although the construction lender will want the note subordinated), pay off the loan (in addition to regular payments) with release fees as each lot is sold, and make sure the interest is paid (not accrued) regularly.Your issue is classics dealer vs investor issue.Note: Classification of gain as capital or ordinary is determined property-by-property, based on the statutory determination of whether the property is a capital asset or property held for sale to customers in the ordinary course of business.

At this point curiosity is pushing me more than anything else.

It needs to be eye catching but sparkes curiosity.