And then using what's left to payoff probably relatively low interest loan that you have on your rental and loosing interest write off deduction doesn't sound like a wise financial move...Why don't you consider setting up a self-directed IRA, moving your Vanguard IRA in there and then invest passively in trust deeds (or some other alternative assets).

He would then report the information on his tax return.You can each provide the other with guidance and support - but joining together may make things more difficult especially if you are holding title in your own names.An alternative is to be on the title together and do a tenants in common.

There is innovative energy monitoring/submetering available that allows for electric use to be accurately metered among tenants without separate traditional meters/submeters, and it is an insignificant cost to implement & an accurate alternative to RUBS.

The internet is a lot of things, but it is not a suitable substitute for real world experience at the interface of alternative asset investing and the tax code.Custodians are processors. 

Can anyone suggest an alternative that can scale from tracking all aspects of a single rehab to X many at a time?

The in-laws make around $70k combined and have around $50,000-$100,000 in savings.As an alternative strategy, what if the home equity loan is used to finance a new house for the in-laws, as well as a handful of multifamilies in a place like Bakersfield, that produce more cash-flow than we would get from a triplex in LA?

The tenant is getting the benefit of alternate housing, so I think it’s fair for the tenant to pay rent.

Aaron McCarty if you look at the formulas/metrics in isolation then the numbers don’t mean much.The formulas/numbers is all relative, especially as everyone/business has different goals and risk tolerance.Compare the results to the alternative, example: compare the historical stock market return on blue chips to an A class area.

Those will cash flow nicely, but there isn't as much on the equity capture, so it's a mixed bag depending on your goals.An alternative in the meantime is to look into being a passive investor on other larger properties that have lead investors and watch how they run the syndication and their plan to improve the property.

If you only have a couple thousand in the bank, you're pretty limited in what you can do, unless you find the alternative financing options that so many on these forums discuss.