Is it foolish to consider using the HELOC for the down payment?

Hey @Greg Strunak, get a good CPA to help get this all setup.

If you gave the keys back to the bank  they simply would never deal with you again and I see that today even after 10 to 15 years from when it happened.

Purchasing a STR in a somewhat sketch area is a terrible idea and as others have mentioned, is going to open you up to potential issues. 

I'm not trying to be hyperbolic. 

Similarly, if you put several Class D tenants in a Class A 4-plex, what do you think will happen to the property?

@Elizabeth King Your property does not need to be in an LLC to benefit from real estate tax advantages.

It’s starting to catch up though. 

That's not exactly an up and coming area -- I'd research who built them - can likely find that by going to the SG County Recorded Docs site or by seeing who pulled the permits during const -- Wichita has been on a duplex building boom -- look at the tax value -- They probably have that or less in it on the build - I also doubt they were built to be quality long term -- things such as the trim/cabinets etc -- they all look like the cheapest stuff a guy could buy - if the cabinets aren't oak and there is MDF or pine trim and pre-hung doors with engineered wood jams I'd run.  2-3 yrs ago for $180k -205 or so you could buy duplexes in Maize, Kechi, Valley center all day to builders that were selling them off to investors - not worth that in that area.

Hi Alaina, welcome to the community!