He is very good about deductions on tax returns so his income looks negligible and of course banks wont talk to him about loans.

The 1031 exchange will indefinitely defer all tax on profit and all depreciation recapture.

A HYSA pays 4.5-5%(before rates went down) pre-tax, 3% net tax if you're a high earner. 

Eliminate debt, establish a budget, and save.

To Sum it up, its a good idea if you can exceed the cost of capital (higher rate than your cost of debt) with what you earn on your heloc/debt you pull out and invest.The question is how much gains above is enough to substantiate the risk of your variable interest rate, well thats up to your personal investing criteria.

I'm not motivated, but the homes needed work I didn't want to do or I did if for strategic tax or debt shell game reasons.

Regarding the HELOC question, consider the interest rate on the debt.

A successful rental property should offer positive cash flow, meaning your rental income should exceed your monthly expenses (mortgage, taxes, insurance, maintenance, etc.).To find the right tenants, ensure the property is priced competitively within the local rental market.

DSCR lenders are much more flexible with income requirements and don’t require W-2s or tax returns.I’d be happy to connect and chat more if you’re interested!

You may be able to deduct mortgage interest and property taxes before the property is in service.