Read this.   

Has anyone dealt with this? 

In short, this would be an entirely appreciation-based investment.Given the state of the economy today, with high interest rates and the seller-buyer lock out effect, I want to discuss the pros and cons of this investment at length, specifically in the context of all the other properties / neighborhoods that I have been evaluating. 

if you don't know what this is, look it up.)how it benefits you: you pay yourself back - you pay back the cash you spent with the cash from the brand new loan.

For more info on Cleveland you'll want to read The Ultimate Guide to Grading Cleveland Neighborhoods.

It's hard to find a cash flowing rental in this area, but paying all cash certainly helps!

Turns out the guru wants me to pay him $$$ to be my "adviser", and get access to these "special" HELOC's banks that could do this.

., if the business is not a "rental" business per tax code, we count that income as non-passive and offset other income (W2, etc) similarly.Does anybody else have some guidance (or opinions) on this matter?

I think this is a mistake.

The main problem with negative cashflow properties is this.