It's simple, most banks/preservation companies purchase the locks from the same manufacture (at least in my area) and I think it's MFS Supply.

Take 80% loanThe advantage of 2. is I preserve my cash and pay down the HELOC balance over the year vs. paying it all upfront.

It gets harder when you have a partnership with someone else and you both want to preserve your tax base.  

If you want to preserve or increase your current cash flow you will have to keep your debt service low.  

If equity partner is friend/family do you take the loss to preserve relationship?

Your figure seems low, so maybe it's the tax the current owner pays which will be reassessed upon transfer, or perhaps there is some tax incentive such as historic preservation?  

Brokers point to the value-add opportunity to raise it to a 5-6% cap, but it seems most investors are buying here for appreciation/wealth preservation.

The house door has been tagged with a notice of preservation, is not listed on the MLS and the tax assessors site still lists it with the owners.

Diversification is for wealth preservation.

@Ali Boone, great to hear from you as always :)@Trevor Ewen, I like how you think about investment temperament changing, I'd never thought of it like that but it makes perfect sense that once you are actually living off investments, you are more interested in preservation than growth