Couple this with the "Cash Distributions from Capital Transactions" clause and you begin to see the real problem.

Are you considering doing all cash, or do you want to finance? 

However, it’s important to ensure the seller is comfortable with the terms and that the property cash flow can support the agreed-upon monthly payments.Seller financing can be a good strategy to grow your portfolio with less initial capital, especially if you're able to increase the property's value through improvements (forcing appreciation).

Use the HELOC on cash-generating opportunities like flips, then use the cash generated to buy long-term buy and hold investments. 

Financially free always betas debt free, and taking on more "smart" debt is not only opposite of risky but actually the goal for the most seasonal investors.  

@Federico BuenoWith 6 bedrooms, your house hack has huge income potential, and you have multiple ways to maximize cash flow.

So about a 35% cash on cash return for my buddy each year on his $100,000.

If the property cash flow starts in 2024, personal usage is not that impactful.Talk to your CPA if renovation counts as QIP for bonus depreciation.

I am in the Single Family Investment space so if you ever wanted to chat about that feel free to message me! 

I am aware of 1031 but wondered if I can just cash out without purchasing new property.