It’s like everybody was gangsta 2012-2019, and then 2021-early 2022 was weirdly good too (due to market distortions caused by COVID.)

Would it be wise to use a HELOC on our current residence to use for a down payment on a new propertyHi David, as someone who works with a lot of OOS investors, I would let you know that most of the clients I work with have never physically visited when buying their first investment property - the most important thing is working with a great investor agent and doing proper due diligence.

While we don’t have state income tax here we do have the hurricane tax that comes with high insurance premiums and little real insurance benefits/help when it’s needed.

However, electing partnership or corporate taxation could be seen as a sale, causing unintended tax consequences.

Sometimes they forget to tell you that many tenants in Detroit don't pay (depending on the property manager skill and the type of tenant) - but taxes are very high in the city and so is insurance. 

How is it a tax strategy though?

In that case you might save taxes building with them.

Intangible assets like goodwill or tangible personal property (e.g., equipment) are excluded from 1031 treatment and are taxed separately—goodwill is typically taxed as a capital gain, while equipment may be subject to depreciation recapture taxed as ordinary income.To minimize taxes on the sale of the business, consider strategies such as Opportunity Zone investments, which defer gains until 2026 if proceeds are reinvested in a Qualified Opportunity Fund (QOF), or structuring the sale as an installment agreement to spread taxable income over multiple years.

The promise of accelerated depreciation and immediate tax savings is attractive.

When you say "we," are you speaking about your business or your personal tax returns, or does your business flow into your personal returns because you file as a sole proprietor?