You have used home equity lines of credit to purchase investment rentals and want to know the best way to pay down the HELOCs.Between the two properties you bought, after expenses, you have $250 a month positive cashflow to use.What I like to do is pay down some principal every month with my positive cashflow.I use my extra active income from real estate commissions helping other investors to pay down the principal even more which just frees up that credit for me to use again.I know I can refinance the HELOC debt before it changes to principal and interest as it is just interest only payments as yours are.One difference is the cashflow, I have greater positive cashflow and could make the principal and interest payment in the future with the extra cashflow I already enjoy.I always get HELOCs on my income properties as well after purchasing them to pull out as much of my downpayment as possible.

A Property Manager can also assist with understanding local regulations and the practical aspects of property management, ensuring you make a well-informed decision.Feel free to share more about your specific needs.

Our state licensing department provides the list of licensees for free upon request. 

Offer discounts for applying in a short time period or- offer a free application fee. 

Or that it should be free? 

Feel free to reach out if you ever have any questions!

Second pro is that you get to lower your living expenses or live "rent free" by having your tenants pay for your mortgage payment.

That alone can free up so many avenues for you.  

The calculation involves:Selling Price: $1,075,000Original Purchase Price: $355,000Depreciation Recapture: $105,300 (taxed at 25%)Capital Gains: Sale price minus original cost, minus depreciation, minus selling costs (~15-20% federal capital gains rate for their income bracket).State Taxes: Since the property is in California, state capital gains taxes will also apply.Given the multiple layers, I’d highly recommend your parents work with both a CPA experienced in real estate and a qualified intermediary for the 1031 if they choose that route.If you need recommendations for professionals in Illinois or California, feel free to ask!

Alec,The free services go a long way to giving you a pretty good idea for what a property’s demand will be.