The Line would be variable, but you could pay it back and borrow as needed.

I'll do a quick calculation to see if the property is going to be worth going to look at using estimates for rehab.Calculation:Rental rateminustaxes: this will be on crsdata Ins: I usually calculate $1000-1100 for the yearMisc: 10% of rental incomeProperty manager: 1/2 1st months rent plus 10% of the next 11 months usually comes out to 12%Exp:Rental income: $750(property management: $100)(Taxes estim $900/12: $75)(Insurance: 1100/12: 91.66)This is variable it could be lower(misc repairs in future: $75)= $408.34 per month profit or $4900 a yearThis is a great profit if you get a house rent ready under $20K.Thats a 24.5% Cap rate.

There are so many variables that without seeing the agreement it is very difficult to tell you how each expense is treated.That said: Nothing is deductible in 2012.

Sean Brennan,There are MANY more variables, such as total income, types of income, state you are in, the future, etc...Depending upon your entire situation, You might be best with an LLC taxed as a corporation (S or C).Kyle Weimer, Form 1065 is the US Partnership Tax Return.

The income is also variable (a slightly smaller portion of the payment).

His loans are variable rate determined by the feds stated rate of inflation.

There are just so many variables, I suggest you just put in an offer with the assumption of spending a few thousand, but with a 21-day inspection contingency period.

George, just do the math to make the best decision for you here. if you do have the HELOC in place, the interest (although variable) is very low right now and you would have no fees since it is already in place.

Of course there are a lot of other variables.

First off I know this question has so many variables and there is no correct answer but id like to hear your opinions and welcome all feedback.A little about myself, I'm leaving the military next month and have been trying to find the right place to relocate to.