Quote from @Andrew Katz: My tenant paid a portion of their rent for December on 12/31/24 (late).

Paid off the first 4 years later.

What I love the most is two fold, the interest paid back on the loan goes back to you, the fees to do this are extremely minimal. 

I borrowed $30k on a personal loan from Discover for 15% with no fees for a plot of land and paid "cash" for it.

You might need to file 1099s if you used contractors or other people whom you paid for labor:https://www.biggerpockets.com/forums/51/topics/1167632-expla...

The first is that there's no consensus between tax professionals, and the second is that you will not like my personal interpretation.My interpretation is:Until the property is "placed in service" - everything goes into basis.Illustration.You buy a property July 1st.You finish rehab November 1st and put the property on the market.Your tenant moves in January 15th.The property was placed in service November 1st, and it does not matter that the tenant did not move in until the next year.Everything paid between July 1st and November 1st, including interest and utilities, goes into basis.

.: Quote from @Jay Hinrichs: when I was buying notes I did not even run credit.. but I only paid 10 to 20 cents on the dollar.  

I have been paid off by Cogo loans so I know it happens. 

If youre older and wealthier, paid off sounds a lot better.

But I would have the HELOC paid off.