It’s paid off, I would “like” to leave it that way & maximize the cash flow while paying down the heloc between the rental & other income.  

The idea behind this analysis is that I would follow these strategies for a long time, and scale.. but as far as I can tell, I used realistic numbers as far as the income goes... unless if I'm wrong and that could change everything.

For your scenario, a DSCR loan could work well if the property’s projected rental income can cover debt payments, but most DSCR lenders don't include renovation costs directly.

You mentioned W-2 income as part of a way to save on taxes. 

After that's under control, focus on increasing income through additional work at your current job, taking on a side hustle, or finding ways to increase income on your existing rental.At the same time, educate yourself.

Rental gives $500 monthly income from $2,000 rent.

I'm interested in learning about rental property investment, looking to build a rental portfolio, exploring real estate investing to replace my income.

Be sure to: call & verify employment references, request pay stubs to confirm income & check rental history by contacting the previous landlords.Keep the momentum going!

@Mike ReynoldsRegarding your comment that if you need funds you can use money from your side business:You can't use non-retirement funds to pay for expenses related to real estate held inside you Solo 401k.Subject to the contribution rules and income limitations, you may be able to contribute non-retirement funds to your Solo 401k (e.g. as an employee or employer contribution) and then you could use the funds in your 401k to pay for expenses related to real estate owned by your Solo 401k.

I am assuming that this means I can deduct interest paid to original lender and report the interest I received from buyer as income like Ashish mentioned?