One big one is that you don't accrue any interest until you actually use the HELOC funds.Using a HELOC to purchase investment properties is a popular and effective strategy.

The cons are it’s not generating any cash flow and it is accruing taxes and utilities (heated well house).

Only 74 acquired properties in 2013Q4, down from 96 in 2013Q3, 302 in 2013Q2 and 160 in 2013Q1.Operationally, they have $30M in Accrued property taxes that will most likely hit their expense column hard in this quarter, 2013Q4.

it was as new as you're going to get for a 100 yr old building and overall, we've had minimal maintenance issues and are accruing more for just cap ex then you're projecting for both maintenance and cap ex on a partially rehabbed building. for perspective, we accrue $6100 annually for cap ex on top of all typical operating and maintenance expenses.  

Interest accrued = $3.90 for a total of 653.90.

That was a balloon and interest accrued at 1 year.

if it's due on the 1st, you're late on the 14th, regardles of when a late fee is applied...my tenants rent is due on the first, late on the 2nd, and law allows me to assess late fees on the 5th...i won't renew leases, if i have to continually hunt down my money on tehe 4th...sidenote: at my small bank, my mortgage is due on the 3rd, and interest accrues each day that i don't pay it..late fee would be assessed 10 days later

I am sure there was a lot more owed to Hoa then past 12 months so they might be offsetting the rent collected against the balance that accrues prior to 12 months. 

If you are serving Pay or Quit on the 2nd (rent due on the FIRST) DO NOT INCLUDE late fees as they have not accrued yet.  

We've lived all over; and I actually started my RE investment journey in Fort Collins, CO.We're also interested in buy-and-hold properties for cash flow (whether short term or long term rentals), and the 1-3 year goal would be to buy an investment property in Durango that we could 1031 exchange into and owner occupy after renting it for 1+ year(s) to eliminate all the deferred taxes accrued from the 1031. whew, that was a mouthful :)Anyway, I'm not probably a great local resource for you, but if I could offer *you* coffee/lunch, I'd love to meet up and see how you've found the last year to be, your experiences, opinions, etc.