Always prepare for the worst.

it sounds like you're really eager to deploy a bunch of capital into supposedly cheaper markets, but you're not going to cash flow $500 on a random single family anywhere unless you are self-managing and super hands-on and prepared to deal with rough turnovers.  

I would venture a guess that many investors believe that agents who cover the same territory are competitors, however as I'm sure you are aware that there is more success in collaboration as agents than competition.

No risk, just reward—whether for personal deals, joint ventures, or simply passing along awesome prospects to each other, I’m always actively prospecting for new deals and sharing them with my network.Let’s collaborate, learn, and grow together!

Actually started this venture about 3 years ago. 

Live in one unit and rent out the others to cover your mortgage.Seller Financing: Negotiate terms with the property seller where they act as the lender, often requiring a smaller down payment and bypassing traditional underwriting.Partnerships or Joint Ventures: Partner with an investor who provides the capital in exchange for a share of the property’s equity or income.Lease Options: Use a rent-to-own agreement, which allows you to control the property while saving for a formal purchase.BRRRR Method (Buy, Rehab, Rent, Refinance, Repeat): Acquire a distressed property with short-term financing, rehab it to increase value, rent it out, and refinance to recoup your initial investment.Pro TipStay in close communication with your lender as you approach your next purchase.

Kudos to him for doing it, but his rules and his dogmatic approach is also the same thing that made Open Door Capital a horrible venture because they skip over being pragmatic.

Currently I have about $1M sunk into a previous business venture, so I expected I would have to pull some equity out but wanted to explore all options first. 

Has a large following .I believe this is new venture Not recommending it or disapproving it as I don’t know enough about it.

If there's any existing balance on the HELOC when you start, just remember that those interest payments and principal payments (if any) are NOT part of his scenario.Now, tell me how wrong I am, but be prepared to explain why.David:The HELoC is a bit of a strawman in this example.Back to my earlier question, why not simply increase the payment on the mortgage note by $300/month and dispense with the accumulator and lump-sum payment of $3000 every 10-months?