I've gone through eviction court proceedings, ran thousands of background/credit checks for application, made numerous leases, dealt with repairs and whole house renovations when a few tenants nearly destroyed properties, and worked with property management companies on the HOA units. 

Not considering risk reward.  

After doing numerous internet searches, it does not come up in any fashion under my name - and this guy somehow got it.

Through the lens of risk vs. reward, probably not worth it just for depreciation benefits in my book!

Bigger risk, bigger reward - but only from a Cash flow perspective.Typically as Sebastian said these are D class or C class at best.While you might be getting a better return on cash flow you are not investing, you are buying a business.

Having paid off RE eventually cash flows quite nicely :)  Yes very wise words,I question if I'm risking too much using a HELOC.Debt increases risk AND reward.  

Furthermore, if numerous investments are utilized from one debt (loan), the interest must be utilized for the same investment and filed accordingly.Business investment interest expenses follow the same general guidelines but do become more involved.

Real estate investing is super rewarding if you understand that it doesn't happen overnight and you are willing to put the effort in.

Analyze market circumstances, project remodeling costs, weigh risks and rewards, and do extensive due investigation on possible investment properties.

It's a thrilling and rewarding world, but it can also be overwhelming for newcomers.