Reason is a Heloc generally carries a higher rate on a shorter term and "Can Never" be used as an "Asset, or for PITI reserves" which are both required when you buy an investment property. 

Well if you ran realistic conservative numbers for maintenance, capex, vacancy rates, rental income, etc then you don't really need cash flow do you?

They have had 100% occupancy at market rates and currently bring in around $2,000 per month in cash flow.

Usually its because there is a lot of debt risk. when interest rates went up a year or so ago I lost over 300k in sydication projects I was a part of because I didn't understand this concept.

My best guess is their failure rate is more than 98%.The truth is not as “convenient”.

My first mortgage was almost 11% and that was a good rate.

Don't get me started with costs you're not anticipating.Once you drop this unrealistic "dream", and focus on what's in front of you.

While I have a fantastic rate, the co-owner's giving me the option to refinance or he'll force a sale.

It's a finance institute of one form or fashion, they will use it if it's in there best interest, and that means the person who holds the button to drop that ax.

I wanted to drop this review so that future clients are aware of what they are getting into.