Dallas has similar rents to Fort Worth, but prices are much much higher, resulting in a lower cashflow. 

A HELOC carries a higher rate over a shorter amortization usually 10 or 15 years and a mortgage carries a lower rate over a 30 year amortization offering a lower payment.You have to run the math in each scenario because the math differs based on a few things like Fico score, CLTV, Loan size, and time frame between purchase and refinance of new property.

Tons of R6 lots still available in the area with lower price points for new homes.

While these losses won’t immediately offset W2 income without REPS, they can be carried forward to offset future rental income or capital gains when you sell the property, lowering your tax burden long-term.This post does not create a CPA-Client relationship.

I read about it on Reddit and have had it for a year - it does everything more expensive softwares do but for a much lower price. 

The interest rate on a HELOC is usually higher than a normal 1st lien mortgage, but I am seeing some cases where HELOCs are in the 6's and 7's (where credit score is high and LTV is 65% or lower), which make them pretty comparable. 

Thanks. because existing is super messy and lower returns for general contractors and HIC, I'd recommend looking at new construction too. start to finish 120 days right now on 1-3 family is what our market is going for high volume spec homes that have been built before. 

After 30 months I will have paid the loan down a little, forced appreciation, might have a little market appreciation and hopefully interest rates are lower in 30 months then they are now.

The reason for this is that it would have lowered our monthly payments.

My strategy for getting started is to use a HELOC for my down payment and all other upfront cost and reserves, then refinance as soon as possible to get the fixed, lower, interest rate.