Currently Im in the process of renovating an ADU above my garage to become my first STR, its a slow process but am looking for some expert contracting help that won't break the bank!  

I also stuck about $10K into renovations leaving me with $46K.Feb 2023 - Our second property was an upper and lower that we had to put down around $50K on. 

Additionally, it can help maximize renovations and improvements.36.4% of the total depreciable basis was classified as 5-year class life.

@Mario Morales - As some others have said I think the strategy is sound, but the key would be to find a distressed property that you can drive up the value with renovations so that the new value is 25% higher than the purchase price so you pay back your HELOC.

@Rosette PooleRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

For instance, structuring investments through a European company that acts as the buyer of the properties and handles renovations could be an effective solution.

Sounds like a good opportunity but I am tied up with my own stuff...Under 100kNeeds: Roof, some plumbing and electric, kitchen cabinets and counters and a vanity He put in a good amount and has a project underway but just wants out. 

This route also provides access to capital to fund some larger purchases in the next 5 years (roof, HVAC, siding, windows on rental property and last projects on primary residence) in the form of a HELOC if we were to go the route of a first lien HELOC/All In One mortgage.

You should cover the mortgage and all other expenses, actual or projected.

Feel free to reach out, and I can share some recommendations based on your project