Out of curiosity, why are you getting your MBA?

I am not in a market that freezes so I am truly asking out of curiosity...Why 55? 

And the rents are accruing in accounts held in my name.

New Jersey Sercurity desposit Act is one of them that I just found, landlords are required to put tenants Security deposits into a separate bank account that accrues interest, send them a letter stating the bank and type of account within 30 days of receipt, and pay them the interest annually.

@Christopher FinkOut of curiosity, did this deal come up because your sister in law is looking for a place herself and you figured it might be a good way to start investing?

HELOCs typically start accruing interest from the day that that the charge/withdrawal/advance is posted, so even if you paid off the balance at the end of the month you would still owe interest.  

The State of California's position has been that any capital gains accrued on California real estate will be subject to California tax upon the ultimate sale of the real property even if the investor had sold his or her California real estate and subsequently 1031 Exchanged into investment property located outside of California.

@Max Tanenbaum Out of curiosity how much did you end up offering and for how long is the property on the market?

Just our of curiosity, if this garbage was pulled on your mother, sister, brother, or best friend would you laugh it off as "just business" or would you be upset that a scammer caused them problems?

It's not like the landlord is terminating the lease early...I'd love to learn how the rules work in CA out of curiosity now.