Hey Mark,I’d also recommend considering DataFlik for deal sourcing and lead generation.

Hi everyone,I’m seeking advice on a property for a family friend who’s considering selling it to reinvest in opportunities that generate better cash flow.

The goal is legitimate: due to complex tax rules, you have opportunities to game the system by selling some of your investments and intentionally generating either gains or losses.

First, please do NOT think you're going to generate enough cashflow to live off of within 3-5 years. 

What you would want to evaluate is the income generated from the income-producing property(s) to see if the income from your rentals would cover the cost of your new HELOC payment.

However, vacancy means covering 100% of the expenses.Multifamily properties almost always generate higher cash flow due to multiple income streams, which also reduces the risk of vacancies.

This is relevant for multiple reasons 1) appreciation is where the real wealth is generated in RE 2) real estate has tax advantages over cash flow 3) in CA property tax increase is capped.  

If you've been active in this business and actively pursuing a profit during the year, the loss the business generates could help offset other income on your tax return. 

I wanted to build up his team, I wanted to help bring him work, I wanted to help in sales and lead generating and buy into his companies LLC.. but even that was fraudulently represented as  In the beginning he had represented himself as someone who had a team in house around 60 people, with vehicles, trailers, tools, lawnmowers, weed wackers, nail guns.. the works.

Best thing to do is have it I a high yield savings that is generating money on your money and is very liquid when you need it.