As @River Sava outlined, there are pros and cons to HELOCS.

Get that outlined so you're able to play ball in the field and not get played.I invest on the side in private & public debt, take the interest payouts and buy into private & public equity and more RE.

If she sells the property before that date, she would not qualify for the full exclusion unless she meets certain exceptions such as unforeseen circumstances like job loss, health issues, or other qualifying reasons outlined in IRS Publication 523.Regarding prorating the exclusion, unfortunately, there's no provision in the tax code for prorating the exclusion based on partial years of ownership or residence.

Operating agreements can outline each member's roles, responsibilities, and rights regarding property management, maintenance, and financial decisions.Future Real Estate Ventures: If you plan to acquire more real estate in the future, having an LLC in place can streamline the process of purchasing and managing additional properties.

We cover the fees up front in our marketing & outline it again during our walk through.

It sounds like you've outlined a comprehensive plan for getting started in real estate investing with $55k.

The “due on sale” clause, as its commonly referred to, is 2 paragraphs that are usually located in Fannie Mae and Freddie Mac “notes” (which is the specific form/instrument that outlines the terms of your mortgage).

To minimize audit risk, it’s advisable to choose “Other interest” instead of “Mortgage interest” when reporting.Part 2: Forms 1099-INT from Investors to Private LendersForms 1099-INT Explained: Similar to the interest earned on savings accounts, Form 1099-INT outlines the interest that must be included in taxable income.

This was a fantastic outline of the process, from the initial post thru all of the follow up.  

That strategy should be clearly outlined by your advisor.