We are paying cash to him every week or so when he sends bill. 

Great tenant that always pays on time - been there for 5 years Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Having owned property in rockford its not a great appreciation area so getting a HELOC will probably take 5-10 years based on loan pay down and maybe some slight appreciation.

if you're W2 and full-time, hourly or salary, you should be able to go off your pay stubs for qualifying.

Having to go see a piece and pay for transport makes used less attractive. 

If you do find a PMC willing to do this, expect to pay quite a bit more for all the extra hassles!

Let them pay the deposit with a credit card.

You will report worldwide income on your federal and Kansas tax returns.You will also include the MO activity on your KS return.Your MO return will only include the acitivity within that state, which in this case, is the rental property.In the future, if you have income in MO(either through the sale of the property or through rental income), you will pay tax to MO but KS will give you a credit for any taxes you pay to MO.best of luck

The property owner's tax professional can help them with that and ensure they don't pay taxes twice on the same income.Disclaimer: My advice/opinion in this post is just that, my opinion.

I am in 2 of his deals and both are not currently paying a return.