If there is equity can you use that to reinvest and come out better ahead doing something else?

Most seem to like there to be a business reason for the state you use to create the LLC, either the property is there or you live there. 

You've done well with your Class A rental, generating $500/mo in cash flow, this adds up over time.

This is a super important question and it doesn't just apply to lenders.

You can use a bank statement program, (1 year 1099) and depending on your schedule E or how you show your passive income or Schedule C depending on business tenure you can use just one.  

Hi Wendy,Coming from a Banker in most cases the Heloc is a Line of credit you only pay on the amount you use and a Heloan is the bank/lender gives you all cash.Lets say you borrow $10K as a heloc and in the first few months you take out $1500.00 your payment is only going to be based off the $1500 and not the $10K because the rest in the line of credit (LOC) not being used - Same as a credit card.

Quote from @Heather Luu: This brings me to another question.

While many out-of-state investors may purchase properties without an in-person visit, first-time buyers or those new to real estate are strongly advised to conduct a site visit.

Is this like LA metro where no one really uses metro line? 

I guess the idea is to use the equity from one property to purchase the second property, and so on.