Also, it’s worth confirming if any particular lender requires the policy to have accumulated a certain amount of cash value before offering a line of credit.

Further, it's always a good idea to do due diligence into the association itself to make sure it has adequate reserves in case of any large future expenditures.

My only reservation is the higher interest rates on these particular loan products vs regular residential mortgages.

I positioned mine near Case Western Reserve University and the hospital system, and that has been a major advantage.

Did you complete any moisture tests to confirm there's no mold growth?

He posted a question, similar to yours, He said he had 180k in liquid cash and he was looking to buy some 8 unit property where his entire 180k in capital plus more for all the closing costs and interest reserve and transfer taxes and the whole nine it would be near 200k. 

I looked into it a few years back and decided it was too risky for me.You can go terribly wrong if you think you can do 30 or 40 such deals with money down and/or cash reserves.

You need to maintain a reserve to handle unexpected costs in the first year.How much should you maintain in the reserve? 

I have an 800+ credit score and access to over $100k in revolving credit and much more than that in personal loan offers, but currently have less than $10k in cash reserves, which I plan to build back up to $20k in two months.My mom, in her mid-50s, wants to invest in real estate as a means to improve her retirement.

So really, flipping isn’t about tax advantages—it’s more about building up some solid cash reserves so you can eventually invest in buy-and-hold properties, where the real tax benefits start to kick in.