Hi Chris, This would come down to what your blended rate is factoring both your HELOC and 1st Mortgage rate

I would recommend look at property taxes and insurance costs and factor those into your projected monthly payments.

Earlier this morning I sent a message to my CU's mortgage loan officer asking if they would cover log siding.

Have you factored in tax savings on this?

This morning I went to wire in funds for my clients to buy a property in SC.And because it was an assignment contract to ME as the buyer..

However, if you’re unsure about future property values due to the unique nature of the property, this could pose more risk.What You May Not Be Considering:Financing Flexibility: Using a HELOC for repairs is a solid plan, but make sure the loan terms are favorable and the rates are manageable over time, especially with interest rates fluctuating.Vacancy and Maintenance Costs: Once all units are rented, factor in potential vacancy periods and ongoing maintenance costs, especially with multiple units.In conclusion, while the repairs are a big expense, the strong rental income potential suggests it could be a good deal if you manage the rehab costs well.

The potential to generate $9k in monthly rent from a $1.2M investment with the lower interest rates and building costs factored in makes for a compelling cash flow model.

An activity is a personal service activity if it involves the performance of personal services in the fields of health (including veterinary services), law, engineering, architecture, accounting, actuarial science, performing arts, consulting, or any other trade or business in which capital isn’t a material income-producing factor.7.

And the fact the new owner of the neighboring property also failed to do due diligence should not factor into your decision to keep, if still allowed by your state laws, what you presumably paid for. 

Distance from property to property could also be a factor.