A common misconception is that real estate properties under $1M have a smaller tax basis and therefore do not benefit from a cost segregation study due to the associated fees.

The interest rate and loan term remain unchanged.Fees: Most lenders charge a fee for recasting, typically ranging from $100 to $500.

The law does NOT apply to landlords:With less then 5 rental unitsThat live in one unit of a duplex and rent out the other unitThat rent out rooms in the home they occupySo, landlords can no longer state in their rental ads, "Section 8 not accepted".The reverse is also true, "Section 8 only", cannot be used.We've always recommended screening S8 tenants the same way as cash-paying tenants.Landlords waiving application fees and/or security deposits only for S8 prospects may also be violating Fair Housing.

The penalty can be reduced, but there's a fee (or you take a higher interest rate). 

There are no taxes, but there are still fees which work just like taxes.

The issue I see most is the cashflow gets crushed by HOA fees and the added headaches of having them tweaking rules etc. 

Ask your lender about their recast requirements (payment amount and frequency).

But, this has absolutely nothing to do with living out of a line of credit rather than a checking account.Even not counting the opportunity cost credit given in the analysis for the “reserve” theoretical investment, the additional nickel and dime fees associated with the HELOC will eat up any savings.Perhaps you became much more vigilant at controlling expenses when you decided to use the HELOC to pay your everyday bills.

It is very time consuming to get permit approvals and you may be in a position where you need to extend, pay fees, etc.. when your loan is past due.   

You will have to pay an annual fee for this service, but it takes the repairs and Tenant requests off your plate.