Antonio it's all about getting something big down the road and reaching a goal versus living in the now and spending every cent you have.Money isn't the problem it's how the person SPENDS the money.You give someone 500,000 and they can be broke in 6 months from having no control.Someone can save 20,000 then compound it year after year until they have millions or tens of millions if they use money correctly.

So it would compound the drama.Im told If I were to go to mediation they woul just tell me to try to be more accomodating.Im preparing a letter (with help from an attorney, who thinks she is trying to get me to 'waiver' that clause in the lease) and I am telling her It is a violation of her lease and I will not allow it.

Usually during the 11th year principal and interest is required to be paid  so the payment may be much higher since it contains principal in each payment along with the compounded risk of a variable rate based on prime that could go up at any moment.A lot of HELOC's  are 30 year loans, 40 year loans, or some are even 25 year loans so make sure to check out the term because it may impact how much amortization or principal will be required to be paid when it switches to principal & interest in years 11+ compounded with the interest rate risk that can go up to 18% in most cases.Personally if I knew I was going to have the debt from my primary outstanding for a long period of time I would use a fixed loan with a long term so that you wont have that risk of payment increases if you adamantly intend to purchase a rental.

I manage repairs for a property compound here in So Cal and just replaced a water heater

Agreed with all of the other replies-Evicting can be VERY stressful and it's compounded by trying to make concessions with tennants that are simply "Bad Tennants" The anxiety you're feeling is compounded every time you agreed to let them slide on rent and now you have a monster you feel is out of control.

A little joint compound goes a long way.

I understand that and it makes sense to me.However, when I try to figure out what a comparable personal loan situation would be, I get a little bit confused.Using a loan cost estimation calculator (based on monthly compounding), if I were to lend a person $60k, I would need to charge 16% interest in order to get $5400 back after a 1 year.Does that comparison make sense?

I think I already addressed most of these questions.To reiterate, risk tolerance is moderate.What is available, long term goal, available cash, these were touched on in my original post.I need a 8-12% compounded return at least, including cash flow and potential appreciation.I can be very active only for a couple years, thereafter pretty hands-off is ideal.There was a lot of back and forth in the thread regarding some math concepts, but I was looking for an 'if you were me' type suggestion giving the still high demand and prices relative to rental income.

At the end of the day, they failed at their primary purpose, so move rent from tenets to landlords,   They compounded that failure by not communicating.  

Once you start monkeying with the system, you start diminishing the benefits of compounded tax sheltering over time that a retirement plan provides.Speak with self-directed IRA providers about how such a tool can be used to generate tax sheltered wealth.