These loans are short-term as you mentioned, typically 12 months, so you'll need to refinance before that balloon comes due.

The IRS generally does not allow you to deduct expenses for a property that has not been placed into service, as deductions typically apply to operational properties actively being used to produce income.

Helps with your debt to income, better opportunities at cash flow, and typically requires less down to purchase.In regards to challenges, I usually build in an extra 10-15% to deal with things that I can't see behind the walls, including dry rot, electrical or plumbing issues, etc.

No reason to spend $1000-$1200 on a typical 1031 QIMathew 

You essentially end up paying over $300 per month if you attempt to start making calls from the dialer.

It does share similarities with annuities, but the structure is designed for a specific audience:Property Owners: Typically those who already own income-producing properties but need liquidity for renovations, debt repayment, or other opportunities.Investors: People seeking exposure to real estate cash flow without the complexities of direct ownership, especially those already familiar with stocks or REITs.Again, the idea of the model isn’t for everyone.

Up front fees (outside of appraisal fees) are typically a red flag when dealing with a HML.

You typically need to be in the $400-450k range to see those rents.

In these instances typically the lender will pay it to protect their interests. 

Next step is typically to file the action at the courthouse, like you said.