If we put it in an LLC, it's safer to do business, and count everything as a business, as well as protect our personal assets. ---- As I am typing this, I'm thinking it might just be better putting it in an LLC, since I can't exactly think of any cons to this.

A HELOC is a debt position (and they count the entire available amount against you) that weakens your equity position on your primary.   

YOUR TIME, 24 HOURS ... and counting.........Be AMAZING Be the change you want to see in the world!

I can delead most buildings for about $2500 per unit, counting the outside as a unit.

If the units are the same bed/bath count and square footage they'll most likely rent for the same amount.

Numbers-wise, it doesn't really make sense but it is an area where you can count on long-term appreciation, just not sure it's worth the headache. 

@David Huynh, rental real estate (passive activity) wouldn't count. 

In both cases it only counts during the draw period.

It's not that easy to accomplish and usually involves advanced strategies such as bonus depreciation mentioned by @Logan Allec and asset segregation.The good part is that investor-friendly lenders will add back depreciation, not counting it against your income for underwriting purposes.

I do not want to count but we own around 20 units, all but one, in San Diego county where the average cost of RE is well over $0.5M.