Like maybe I could pull enough out from heloc on primary residence to pay off debt and then rent out my primary and use the extra cash to payoff heloc and then do another heloc once the original one is paid off.

Hey Jason - if it's a 1-4 unit, you would need to value it based off the sales comp approach (assuming the buyer is using debt financing).

Usually draw fees are very minimal though and if you plan them right, it can be a great way to replenish your cash or pay down debt from rehab.

The seller will also have to sign documents that are required and it will hold them liable for debts since they are on title.Best way to set that up is run the numbers and create a partnership based on the equity of the land and your cash injection and sweat equity.

It always cracks me up when someone hands me a business card that says "President and CEO" and they don't realize how ridiculous that looks.

The only thing that I see missing if they are purchasing with hard money debt they may want to factor in 3% - 5% for closing costs (points, fees, title, etc) Thx Zachary!

Those areas will eventually cashflow as you pay down debt but definitely not in year 1 Thanks for the response!

Here's the breakdown of rental income and expense analysis:1.Annual Gross Income: $25,800 (Monthly rent of $2,150 x 12)2.Annual Expenses: $25,800 * 0.40 = $10,3203.Annual NOI: $25,800 - $10,320 = $15,4804.Annual Debt Service: $10,680 (Calculated previously using a mortgage calculator with a loan of $131,775, 7.25% interest, and a 30-year term)5.DSCR: $15,480 / $10,680 = 1.45 (approximately)

Just watch your debt-to-income ratio to make sure it stays manageable.Both are solid—it depends on your goals.

If that's not in the cards I highly recommend you wait to make this purchase.