Are you trying to imply that someone buying from you the $535,000 condo in your illustration above would have long term results similar to yours?

See the illustration below.In a declining market, the current rent reflects property prices from 2 to 10 years ago and they are likely to be relatively high compared to areas with appreciation.

Scott's original examples each began as all-cash and then became financed to illustrate the concept of negative leverage.

Fortunately, there is an easy method based on elimination, not selection.The process is illustrated below.

Your post is a great illustration of this.

She wore a green tattered skirt and a cane, Pitiful Pearl doll illustration below.Tenant went to Harvard and this is her third gig.

If you took a pulse of the youth all over the country and even abroad, most want to move to California if they could.So yes let’s do illustrative math.

This was to just serve as an illustration and gain familiarity with my analysis - I would account for a few other things in a real life scenario. 

But the word 'HELOC' is traditionally associated with 2nd mortgages on primary residence, so I think, in addition to making some relationships with smaller banks in your community, ask them if they grant homeowners secure lines of credit with the homes as collateral in first position.Remember, there is a thing called a CD Line of Credit - for example, you put 40k in a CD(this is a terrible investment, by the way, but I am doing this for illustration) and then you tell the banker you want a line of credit secured by the CD. 

Here is an infographic illustrating this here in California: https://infogram.com/california-bands-together-1g43mn7yrl062zy2.