However, the benefits of this type of transaction can still be safely realized with proper structuring and a good amount of equity injection.  

Personally, I started my investment journey with multifamily properties before moving into single-family homes.

(Keep in mind there are Fannie Mae maximums on the number of personal loans you can have - which is 10 per person.

You are still going to have holding costs and a heloc will just have less holding costs that you would if you were doing a personal line or hard money. 

I’ve met most of my partners through in-person events because it’s easier to get a feel for someone’s personality and long-term vision.

You missed an important item: Depending on how a person does #1 or #2, it could get them: A fast-pass to the "Principles Office" for "bullying" and now there sitting in "detention".... 

Recapture typically happens only when you sell the property.If you use the property partly for personal use and partly as a rental in a given year, depreciation and other expenses must be prorated based on the number of days it was rented versus personal useBased on the current tax laws and regulations, once you've taken bonus depreciation on an asset, you cannot "capture" additional bonus depreciation on that same asset in future years, even if the rates increase.In the 2024 tax year, the rate for bonus depreciation is 60%.

The idea of debt-free is that if a person is going to retire and has to completely depend on the income, they don't want a severe recession surprising them and causing them to default on the debt and losing the properties.In a normal world, I would do that as well.

But then, looking at your profile, I realized you live in the Netherlands now.

I believe that the technically correct answer is that they all moved from California to Texas and Florida, whereupon they realized that it gets extremely hot and humid in those places, has extremely variable weather, and large insects, and are now leaving Texas and Florida.