I'm a CA resident, so gains would be taxed as ordinary income.

AlabamaAlabama residents enjoy a low cost of living and a thriving economy.

If you are "doing business" in CA, the LLC should register in CA as either a resident LLC or a foreign LLC. 

I have also purchased resid. and comm. properties where the landlording/property management was really poor. 

A 1031 exchange is NOT available for owner occupied property so that’s the bad news.The good news is for owner occupied primary residences, for married couples, the first $500,000 of pain is tax free.No need to worry about a 1031, live in the house, sell it, use the $500,000 exclusion and you pay KP tax on whatever profit may exist,2.

That being said, if this is a Heloc for an investment property and not your primary residence, most banks and CU's treat these as commercial LoCs, so the rate is likely be 9-12%.

No one in my family really does real estate except for my mom which rents in PR and a couple houses in Dominican Republic but these were things that happened by chance (DR houses were inherited and PR was our primary residence when I was little) ...  

It’s not that these expenses aren’t important—they should absolutely be planned for even if the property isn’t producing extra cash monthly.So no, you’re not misunderstanding—it’s just that the guest may have assumed investors in this strategy are prepared for such expenses through other means, like savings or planned reserves.Thanks for your input!

Investment Info:Single-family residence buy & hold investment.

Assumption by an EntityUnfortunately, assuming a VA loan directly through a legal entity (such as an LLC, corporation, or trust) is typically not allowed because:Primary Residence Requirement: VA loans are designed for owner-occupied properties, meaning the assuming borrower must intend to live in the property as their primary residence.Credit Review: The VA and lender require the assuming party to undergo a personal credit and income review to ensure repayment ability, which entities cannot satisfy.3.