For any of these real estate funds that have guaranteed rates of returns for set periods I would want to understand how my investment is secured.

Hi Samir, I'm based in Texas myself.

@Patrick Hancock let's touch base next week

Personally I would want to manage the rental myself at least in the beginning to make sure you get good ratings.

Having owned property in rockford its not a great appreciation area so getting a HELOC will probably take 5-10 years based on loan pay down and maybe some slight appreciation.

The reason why I ask is because that could determine what loan options are available to you (and interest rates). 

We are planning to hold it for 5 years and bought a rate cap to cover the entire hold period. 

For the $525K property, with the low mortgage rate(you will probably never get a such low rate), it might make sense to hold onto it for now, especially if you can still sell it as a primary residence within the next three years and avoid capital gains taxes.

Loan interest is deductible based on it's use-not the asset securing it. 

Since I don't watch BP podcasts, I can't really compare for context and reader base.