He brought up a 60% Heloc Strat....Example given:$100,000 3/2/1 SFH$1,000/ Month Rent Rate30yr Mortgage 5.0%Option 1: 20% down20% down 20k, Mortgage payment of $430/month+$245/month expenses, cash flow $325/month ($3,900yr) + est $1200 in equity payed down... for a gain of $5100yrOption 2: 60% down60% down 60K, Mortgage payment of $215/month+245/month expenses, cash flow $540/month ($6,480yr)+ est $480 in equity payed down.. for a gain of $6960yrOption 3: Heloc 60% strat60% down 60k, Pay Mortgage payment of 215/month first 3 months, then apply for a 15yr HELOC ~5% for the 40k remaining of loan.

The lenders that we have applied with are requiring 25% down, which depending on how much the property is that you're buying and what rehab costs may be could push you over the amount of money that you have to put down.When we get some numbers I will reference you to the company that gave us the best interest rate, and possibly if I learn more I will share with you what I have found.Another thing to take into consideration is that when you are beginning to apply for mortgage loans to get pre-approved, you have a short window of approximately 14 days according to most Credit Score companies to get several quotes.

Apply your energy to learning the business and maximizing your ROI. 

I love BP and have learned and applied several good pieces of information from this site.

If you aren't married it's 250k.Look up section IRS section 121.This better and easier than a 1031, however 1031 is for a investment property (that you don't live in as primary residence) because section 121 doesn't apply there.

I wonder if this law applies to a new owner who intends to occupy one of the units while rehabbing the other (house hacking).Any comments are much appreciated.Mike Evans

@Gregory A.A 10% early withdrawal penalty will apply to the portion of withdrawalsfrom your Roth TSP that are attributable to earnings if you separate from your federal job before the year in which you turn 55.Contributions should be penalty and tax free.

You only have to pay taxes on the $5k “boot” I believe, and I think it applies to the recapture first. 

We had good jobs, zero debt (including our home/land/1 rental property), and I had just completed my undergrad degree program with no specific plan for how to apply it; there is certainly nothing wrong with any of those things but needless to say, we simply wanted more.  

The couple was going to apply together but one of them ended up saying that she was not going to move in until the following year.