But really you’re just creating a second job for yourself and one that doesn’t pay very well if it even is cash flow positive at all 😆I used to buy houses for STR but now that I’ve got several STRs up and running that I bought many years ago, I stopped buying STR once mortgage rates went up and housing prices went up.

Then he is going to hire subcontractors to do the job and you are going to pay them for that work as well.  

There aren't many lake front properties in that area for sale, but there are a number that are in the 800k range.

We pay $850 for a WH install, so, that seems high but you are in CA.

To pay for this, I used a heloc on my current home.

Personally, If I could pull out a HELOC, I would use it to fix and flip which will typically make sense as you shouldnt be keeping the money out for that long and you can recycle it or pay it back and build off the capital that you got from. the flip.

For those interested, a combination of mortgages with no “due on sale” clause, mortgage companies loose due diligence, and title insurers willingness to “turn a blind eye” to practices that wouldn’t pass scrutiny now, resulted in tactics like the “second mortgage crank” which not only allowed investors to purchase properties with no money out of pocket but allowed investors to actually walk away from closing with “cash in their pocket”.

I guess the different strategies FOR ME would be.A- Find a lender that would actually do the refi and pay the tax.B- Sell a property and use those funds to lend as they would go back to the IRA. 

After all, you have no evidence they agreed to pay rent or any of the other terms.

If you have large debt with a high interest rate, I would consider paying that off before getting started investing in real estate.