Assuming I'd be able to use the capital on a new purchase and that new purchase would pay for itself and then some, I wouldn't expect it to also cover the debt repayment for the equity loan.

It's easiest in terms of needing less capital upfront to get the business going, but it's certainly not a simple business.

Here’s a quick take on each option:Sell and buy in SoCal: This offers simplicity and high appreciation potential, but with all capital tied up, it limits flexibility if the faculty housing waitlist falls through.Keep current home as a rental, downsize in SoCal: This maximizes long-term profit through appreciation of both properties but might feel tight financially and in space.

This is most of the depreciation you are taking year one.You can calculate your depreciation recapture by taking the sale price of the asset and subtracting the adjusted cost basis.The adjusted cost basis is what you paid for the asset plus any improvements you made along the way minus the depreciation you took along the way.The profit above this original cost is taxed as a capital gain, but the part linked to depreciation is taxed at a maximum rate of 25% under the unrecaptured gains of section 1250.To recap the tax rates are:- Sec. 1250 real property: 25%- Sec. 1245 property and 15 year 1250 property: Ordinary Tax RatesThere are ways to minimize depreciation recapture especially if you know how to work smart with your CPA.1) Asset Valuation at Time of Sale - Sellers can minimize recapture by reallocating the price of the assets on sale.

It would be new furniture and updated appliances, but still need to think of capital expenses.Basic Supplies (tp/shampoo/paper towels) - $200 per monthCleaning - $250?

Capital gains tax applies when you sell an asset for more than its adjusted basis, not when you borrow against it.

As for capital, I will be utilizing my HELOC for initial fund on first deal.

You are touching them and providing some type of education and value to them to bolster your own status, so when you ask for money they are more likely to say yes.And, back to investors or deal first, no broker will ever award you a deal without a reasonable surety that you have the capital lined up.

I love having access to capital, that equals access to opportunity. 

He worked with a small venture capital firm in town for a while and he is currently the GC for a big title company.