I used a HELOC to buy a couple houses.

I am still evaluating if this is the best investment for me to proceed with as we get further through due diligence and I will keep everyone updated on how things go.A couple things come to mind.1.

(So, do you really have a PREFERRED return?) 

I recommend renting it out a couple times before year-end.Material participation doesn’t mean it has to be 100 hours.

@Michael MacalusoA couple of stray thoughts for you.  

But I had a guy back in 2010 or 11 ask a question about selling a house at a loss of about 40k or keeping it even though the rental income was barely breaking even if not losing a couple hundred per month. 

Sold #2 a couple weeks ago. 

I agree, seeing migration patterns coupled with insurance costs and insurability might be a good macro-economic indicator.

The BRRRR strategy is my preferred way to buy and I have wroked that strategy many times.

EB is great source of renters with solid incomes and I have found that our EB renters seem to prefer our listings in Groton being closer to EB and in some cases walking distance.