Being part Alaska Native, there was incentive where they would pay your down payment and we utilized that tool!

Happy to let this property do what rental property does best- pay for itself.

So if you buy a 5 bedroom house and rent the spare 4 bedrooms = you can still sell tax-free under the 121 (you just pay back depreciation) If you buy a duplex and rent 1/2 and live in 1/2.

The 70% rule helps investors determine the maximum price they should pay for a property.

That's not the same as paying cash.According to a different post, your credit card debt costs you $600/month.

I would only use the heloc if you plan on cashout refinancing one of the properties to pay it off once the rehab is complete. 

your comment around "approvals will be easy to get" gives me pays if you've not done this type of project before, I understand your logic, and I don't know your local municipality but it always seems to me that no matter how easy we think a project or approval is going to be, something always comes up.

Paying this out of pocket is going to hurt badly after I've already lost rent for the past 6 months plus court fees.

Do they pay within 5 days of the first of the month (in some states that is not late)? 

. - If you just personally paid for the renovations then the interest won't be deductible because "paying yourself back" doesn't qualify.