Look for the positive in all situations. 

The equity doesn’t mean anything.

Multiple professional references, when addressing this issue, carefully state: "the IRS position is..." - which to me indicates the same doubts that I have about the legality of the IRS position.Until the IRS is challenged in court over this position and loses, I choose to comply with their position.

It is alarming to witness someone in a prominent position within James' mentorship program engage in such unethical practices.

Starting with an owner-occupied duplex is a smart way to build equity and gain experience.

:Quote from @Jimmy Lieu:Have tons of examples of deals that hit the 1% rule and positive cash flow.

I had 2 or 3 called.Now again keep in mind I had zero interest in holding these as rentals and I ONLY bought homes that had significant equity for me.. mainly all pre foreclosures..

Plus, there's still so many positive cash flowing and 1% deals here in Columbus Ohio.

Is it better to keep adding equity by doing work on the houses while I'm renting them then refinance to recover the initial down-payment to reinvest into another property or to pay down the heloc?

One word - equity.