Recently its down to 4.82%, so if we keep in mind our margin or the fixed portion the lenders add on top of the index to come up with your daily rate calculation is going to be as follows:4.82% + 3.75% (example margin for AIO) = 8.57% so we'll round it up to the nearest .125% which should be 8.50% interest only.Given that prime is 8.50% already and there is a margin on top of Prime for most HELOC's out there from .25-3.00% your traditional HELOC would be much higher rate than your comparable AIO loan comparatively.So just some food for thought.

Some specific examples include careless installation of vinyl flooring in our kitchen, resulting in irreparable damage; leaving an exposed nail in remodeled kitchen cabinetry that scratched our new range; installation of bathroom sinks with improper plumbing connections; and multiple instances of failure to remove cigarette butts, food trash, and construction waste from our property.

Such a short timeline doesn't give you any real margin of safety since you get out of debt, then right back into debt shortly thereafter.This depends on your current interest rate though.

While proximity to developing scenes and amenities suggests upward potential, the nearby "war-zone" area could raise significant concerns regarding safety, tenant quality, and property value stability.

Perhaps this will provide some food for thought when discussing your next asset protection strategy with your real estate attorney.

She has a co-signer willing to sign, but I'm hesitant with her age/safety (the garden unit has a steep staircase) and with rent being $1800 is that doable for her?

You could only evict for health and safety issues.  

We plan to use the home for short-term rentals—so safety is important.  

Financially this deal makes sense; however, I am concerned with the safety aspect… I must live there for a year since I am looking for an FHA loan.There are areas close by that i know can have criminal activity but I am uncertain about this specific area (1-2 mile radius).

My thoughts on the HELOC are that we could use it to renovate our current properties and use the funds to fix up distressed properties in the future(doing BRRR-like activities) and thinking it could be used as a safety net if needed.Should we be doing this HELOC if we are unable to pay it back in full at a later date.