The cost of that choice is essentially an additional 1% of the total loan (PMI), but the potential returns on another cash flowing property would outweigh that.What am I missing?

I am sure there are tax concerns there for you but I don’t know if the 5% difference (loan value to interest earned) outweighs your current taxes.

Our research shows the residential market surrounding the underlying property in this area of Atlanta is stable and supply outweighs demand."

I have to agree with Anthony Dooley, the risks here do not seem to outweigh the rewards.

And sometimes that in itself outweighs what would be better financial decision.To your success!

However, you have to factor in all the costs associated with having an S-corp.You will need to see if the tax savings associated with having an S-corp outweigh the costs of running an S-corp.What is your projected taxable income for the year?

People will argue the appreciation here in SoCal will outweigh the cash flow elsewhere, but appreciation [potential] isn't what will get you to a freedom number. 

Petr Stuchlik You could run the numbers to see what a rate term refinance would cost and if that would outweigh the additional costs of an HML

But a bit of convenience shouldn't necessarily outweigh a better interest rate or processing time with a different bank.It's a long story I won't go into, but I was in a bit of a pickle last year. 

The HELOC is kind of a meet in the middle approach where you pull out a lot of the value but not all of it.In my case the opportunity of having that much cash on hand far outweighs the mediocre rental income I would get from keeping it.