Hi Wendy,Coming from a Banker in most cases the Heloc is a Line of credit you only pay on the amount you use and a Heloan is the bank/lender gives you all cash.Lets say you borrow $10K as a heloc and in the first few months you take out $1500.00 your payment is only going to be based off the $1500 and not the $10K because the rest in the line of credit (LOC) not being used - Same as a credit card.

Other areas constantly threaten to curtail the ability to use homes for str whereas sevier county is based on the rental of cabins and they have zoning that can never be rescinded to guarantee it. 

Another option is setting a utility charge per unit based on square footage or occupancy.

Usually they are city or region based in your state.

Hey Keith,I’m based in Portland but own a ten-bed Residential Assisted Living (RAL) home in Tucson.

I'm based out of Raleigh and personally own rental properties in Fayetteville, Benson and Clayton and could offer some friendly advice and help out with your journey. 

Based on your response I can give you some paths.  

Your thesis is basically rent low and accept less desirable tenants so I don't think that is the best thesis to base an investment off.

The information shared is based on my experience and industry knowledge and should not be considered tax, legal, or financial advice.

But based on him saying that the loan is "being paid off every month by my buyer" it seems that we're dealing with A, subject-to.We need clarity, Anirudh.