Policy Loan Costs & PerformanceYou’ll still pay interest when borrowing against your policy.

From our experience with clients, you’d typically expect to pay around $1,000–$1,500 for a single-property return, depending on your situation.If that $6K includes monthly bookkeeping and accounting, it could be reasonable; it could also be low, or high... it all really depends on the number of transactions, bank/credit card accounts, and the complexity of your finances.

So if you buy a 5 bedroom house and rent the spare 4 bedrooms = you can still sell tax-free under the 121 (you just pay back depreciation) If you buy a duplex and rent 1/2 and live in 1/2.

The renter has given you the money to cover your borrowing costs and pay for the home's upkeep. 

. - If you just personally paid for the renovations then the interest won't be deductible because "paying yourself back" doesn't qualify. 

I think you have a solid basis to sue them for all of the damage - though getting them to pay will probably be difficult.I only asked about them being related to you because such a situation can cause awkward moments at the next family reunion!

Buy and holds is the key to true wealth with all the benefits of depreciation, appreciation, loan pay down by your tenants, leveraging the equity, cash-flow etc etc, but it often times isn't the active income that pays the bills until you build up a portfolio and even then there's the tenant management or managing your property managers.That's why I'm involved in all 3.

They can help you find tenants, vet them, and ensure they pay on time.

Of course there's a premium you pay but the convenience can be unmatched when you have the right partner. 

In addition, you've got your HELOC on your primary you'd have to be paying back also.