Just ensure the agreement is clear and formalized.Pooling reserves across properties might make sense if you’re confident in your cash flow and other contingencies.

Lots of older houses but there seem to be several that have the potential for cash flow and while not exactly modern on the outside, have been renovated inside. 

They should pay just like someone on a regular lease pays - cash or equivalent into your bank account. 

If you are in the Wilkes-Barre/Scranton market, you used to be able to get duplexes for $50k to $100k and make it cash flow quickly.

$400k equity is producing $1600/month cash flow for a return from the cash flow of 4.8%.  

Investing in a single-family home in LA and expecting a good cash-on-cash return will be very difficult. 

Usually of the home requires major repairs it may require a HML "hard money loan" then you refinance in 6 months on the new ARV.DSCR is also not a great avenue for low loan amounts because all loans under $125K will take a rate hit and the minimums are usually $125k after down payment with some going down to $100K Min.

Sara,I see this a lot and I always ask if you know you are going to refinance in the long run to consolidate the Heloc why not just do a Cash out refinance instead. 

Hi Chris, if I understand the transaction it sounds like you will receive a 1099-S for the full amount.

My opinion is to invest in the S&P unless you are willing to spend a substantial amount of time learning the space.