California has a couple of additional hoops post foreclosure sale, if its a real foreclosure sale but its still pretty standard.

I used a HELOC to buy a couple houses.

Couple takes on this: Generically speaking, yes it often does make sense to increase your loan amount for monthly savings. 

I am still evaluating if this is the best investment for me to proceed with as we get further through due diligence and I will keep everyone updated on how things go.A couple things come to mind.1.

I recommend renting it out a couple times before year-end.Material participation doesn’t mean it has to be 100 hours.

@Michael MacalusoA couple of stray thoughts for you.  

But I had a guy back in 2010 or 11 ask a question about selling a house at a loss of about 40k or keeping it even though the rental income was barely breaking even if not losing a couple hundred per month. 

Sold #2 a couple weeks ago. 

I agree, seeing migration patterns coupled with insurance costs and insurability might be a good macro-economic indicator.

I've seen a couple around that would probably work outside of Denton if you're open to that.