At the current rents, I think it would be a loss.

Recently its down to 4.82%, so if we keep in mind our margin or the fixed portion the lenders add on top of the index to come up with your daily rate calculation is going to be as follows:4.82% + 3.75% (example margin for AIO) = 8.57% so we'll round it up to the nearest .125% which should be 8.50% interest only.Given that prime is 8.50% already and there is a margin on top of Prime for most HELOC's out there from .25-3.00% your traditional HELOC would be much higher rate than your comparable AIO loan comparatively.So just some food for thought.

I’ll be out of state, which I know is a big red flag for many.Well below 1% minimum of Rent/Property ValueHoping to self-manage (Yes, another big red flag)Loss of capital gains exclusionMONTHLY SUMMARYRental Income $3,500Less ($3,440) Mortgage (2,900) HOA (390) Rent Ins (150)Less ($1,155) Property TaxTot Exp ($4,595)Rev: ( $1,095) !!

Some specific examples include careless installation of vinyl flooring in our kitchen, resulting in irreparable damage; leaving an exposed nail in remodeled kitchen cabinetry that scratched our new range; installation of bathroom sinks with improper plumbing connections; and multiple instances of failure to remove cigarette butts, food trash, and construction waste from our property.

Unfortunately their home was a total loss due to a tree falling, so I have agreed to rent them my STR as a long-term furnished rental while their home is being rebuilt. 

They indulged in luxurious residences, high-end vehicles, and extravagant vacations, all while their investors faced mounting financial losses.

Say you start a STR and use the loophole to write off 100k from W2 salary. 2 yrs later the rental goes underwater and you have to give it up at huge loss.  

My cash out will be 66k, which is very exciting, but I will need a 16% return to justify the loss in cashflow. 

You quantify losses due to withdrawing your 401k - then you leave the real estate investing completely vague.

Perhaps this will provide some food for thought when discussing your next asset protection strategy with your real estate attorney.