If the rehab cost is not very high, I would say a hard money loan would be a best fit for this project.

I could honestly use a FSBO and sell it for $50K and just say 'as-is' and say it needs a new roof and foundation work, I still would walk with $10K-20K more than using a wholesaler.Now if you have access to the 'faucet' meaning a city or bank gave you access to some properties and you are going to find end-buyers I get that.The model just doesn't hold up.

This could mean buying an existing building or transforming an existing structure, let's say a motel, and make that into studio apartments.

@Jillyan MacMorris I'd say a single isn't worth it, especially if it was your primary. 

I would say as you are learning and navigating, you will find that what many on here will say about our area being challenging to be true.

Looking forward to hearing what others have to say as we have considered the idea of AirBnB in touristy areas as well...

Shouldn't the K-1 say a 135k loss to offset the 150k on the 1099? 

@Greg ScottSo is it safe to say, a benefit of a home equity loanIs when there is a liquidity requirement (down payment) that you otherwise do not have?

Then I thought - well if I were to dump the same amount of money into say, a savings account, then it'd be after-tax money so what's the difference?  

They are great tenants, take care of the yard, the dog is rough on it, but ok, never complains, "fixes" minor things himself, say, a ripped screen, etc.