LOC on business purpose doesn't really make sense from a lenders perspective.Think about it, you have to tie up funds and not earn a return until the borrower wants to use them.Time is money and if your lending money you want a return each day your money is out.I'd strongly recommend just going with a cash out refinance and avoid spinning wheels looking for a LOC. 

And to any wondering, no, I don't loose a wink of sleep over using legal tax strategies. yes, I think those who can utilize it have earned it and don't owe a thing to anyone else.

Here are some numbers: Current PITI: $3,970Estimated rent: $4500-$5000 (there are several homes within 4 blocks of mine that owners have turned into rentals and I've been able to compare online pics to our home, so I am confident this is a good estimate)Sq ft: 1790Estimated sale price today: 1150000-1250000Mortgage balance: 612,000I would self manage. 

Could that bite our REP in year 5 when a big pile of ordinary earnings income is realized (if they don’t 1031 and defer it)?

Quote from @David Cherkowsky: @Basit Siddiqi@Andrew Strauss@Katie RippI received the following response:"The more active income you earn, the less you can deduct from your rental property due to the phaseout of the Passive Activity Loss deduction.

We have lots of automated processes - All online rent collections, inquiries, signature requests, and late fees.

Going to repost and remove what they called Self Promotion:Ok, several things to consider but buying the rate down is NOT a way to earn more money for your lender.

Check online reviews and test their responsiveness.

Private lending platforms and some online real estate networks also list these types of cash-only opportunities.

So if you look them up online you will see the owner is a Wyoming LLC, then you go try to look up the owner of the Wyoming LLC and you won't find it.