STOP blindly regurgitating whatever media you consume.

I’m trying to get a heloc or cash out refi on a primary residence duplex.l under FHA.I have great credit but modest incomeWife has bad credit with better income therefore I don’t believe we will qualify for heloc.Our plan was to get heloc to use as a down payment on another house hack or general investment property.So far our mortgage company said they could do the cash out refi which would raise our mortgage from $800 to $1200 (current rate is 3.62) and the rate would go to 6.6To pull out hopefully 30-35k maxMy concern is if I do the cash out.

Since your metric is modest cash flow with long-term appreciation, focus on neighborhoods with a history of steady growth and tenant stability.As a realtor, you already have the skills to analyze deals—so trust your instincts and take action!

There are thousands of pages on consumer protection laws and regulations that depending how you go about doing a subject to could be against these laws and regulations. so like most things - is itillegal - it depends.  

My experience indicates that solid due diligence upfront on the economics is the critical factor, the tax aspects often take care of themselves with only modest planning.

It's the equivalent of the guy with the expensive car and big house acting rich vs. the actual rich guy that lives in a modest house, drives an old truck, and buys his clothes at Costco.

And everyone wants to go to HD and buy Behr paint because consumer reports says it’s the best.

To recover the initial negative position will consume many months (usually years) of your cash flow. 

Its at a ski resort so it seems like it would be time consuming.

Equity paydown and modest appreciation would result in a small profit; not enough to justify a non passive investment but i will own a killer cabin.