Quote from @Samantha Derman: Hi all, looking for advice before I pull the trigger on a HELOC on my own home.

In that case, you can take out cash through a loan without triggering a taxable event, even if you use that cash as a down payment on another multifamily property.

Looking for some advice/guidance on whether or not to pull the trigger on a prospective duplex.

What I didn't realize is that not only is this taxed as ordinary income (I knew that part), but it also triggers SELF-EMPLOYMENT taxes as well. 

I haven't pulled the trigger to put an offer on it yet. 

OOS investing is good as well, but get to know your city you are looking in before pulling the trigger! 

For example, payment from a person should be automatically trigger assignment of a property to it.

Also, I know this status can sometimes trigger an audit.

I've been searching properties for a variety of ideas for almost two years now and never pulled the trigger.  

The more complicated your business structure becomes, the more problems it can actually cause such as when looking for lending options, getting the best interest rate, keeping clean accounting, filing taxes, opening bank accounts, getting credit cards, executing a 1031, making title insurance claims or even triggering a due on sale clause, etc.