If I got a home equity loan for Property 1 and used the proceeds as downpayment for Property 2 and then got a 2nd loan for the remaining 75% purchase price for Property 2, when I sell Property 2, can I use the Property 1 loan as part of the cost basis for computing Property 2 capital gains?

Im trained enough myself at this point in QBO, but my bookeeper still does the more complex entries (Loans, capital balances, reconciliation, etc) I just do the data entries for expenses. 

They finally get back to me after the close date to say they need more time because they are try to cross collateralize their other properties to make this deal happen and the bank they were using doesn't do this kind of loan. 

These names frequently come up in investor circles because of their reliability.Speak Directly to Their Team: Legitimate lenders will have knowledgeable representatives willing to explain their loan products and processes in detail.

I'm interested in how others structure their ALFs.2) I'm thinking of going with an SBA 504 loan to acquire the property and do the remodeling.

At the current scenario, without knowing anything about you or your properties I will recommend either to look at a loan from your assets using DSCR loan.

For active investments I advocate considering how you can diversify WITHOUT ceding your competitive advantage nor the superior profitability of the niche your in.As an example my business is running an investment fund and syndication high interest commercial mortgage loans secured by income producing real estate. 

The current lender refuses to do a loan assumption. 

The two existing LTR units (on my family’s property) were built 5–8 years ago at a cost of about $80,000 per unit, so I’m estimating a 20% increase in costs for the new builds.My plan is to use the equity in the land as the down payment for the construction loan, which I expect will make closing costs the primary upfront expense.

Other than paying for an appraisal or BPO (and maybe a credit report), you should not pay a lender anything until your loan funds.