That’s a big plus for anyone trying to keep consistent cash flow.But there are cons too: extra paperwork, annual inspections, and generally a bit more red tape.

It's definitely an outside-the-box idea to transfer the property to an LLC before applying for the HELOC.If you move the property to an LLC, lenders might see the transfer as a red flag.

Hey @Peter Faulkner, that definitely is alot of red flags.

The new homes will be mostly built in the burbs, and I expect as we move forward outside of many city limits or in smaller cities where the builders can control the narrative with less regulations, less inspections, less red tape, lower requirements.Due to the number of people moving though, we'll see some urban infill as well I expect. 

Any red flags ?

Some red flags to watch for are inconsistent fonts, blurry text, or mismatched information across pages.

There is no reason they shouldn't advertise the unit prior to it being vacant unless they have no idea of the current condition, which is its own red flag. 

@Dan DeGroff - I think you can probably do this as a primary residence since the scenario makes sense (e.g. you travel to Aspen for work during ski season), however, there are some major red flags here that you will need to explain and support during underwriting (e.g.

IMO a bigger red flag would be poor record keeping on expenses and other documentation that would indicate property condition.Anyway, you're ultimately purchasing the income stream that *you* can achieve, not what the seller achieved.

But, the situation you spelled out raises a lot of red flags.