I’m looking for a good breakdown or sample scenarios of when it’s best to use a HELOC versus a cash out refinance on our primary home to purchase an investment property.

@Ashish Acharya I should clarify - if I invest the money into another multifamily deal with leverage, I will probably get the much higher bonus depreciation....I'm also a QREP so I'm not worried about the passive versus active loss and gain.

Formica countertops RED, Granite tops GREEN.This report is clearly easy to red and shows all the upgrades your property has versus the comped property and should clearly hold its value if not the same but higher.WORST CASE, but this only applies to people that are RE agents or if you have a good fiend willing to do this for you, list your properties for sale do not mention its tenant occupied this will bring only investors, but list it as you were going to sell to a primary home owner, in this process I get clear evidence that my property is worth what I comped it for.

Building is usually better from a Marketing standpoint, because you can build it for the customer, versus most mom/pop locations are built because they had extra space where they were already at.

(In a very generalized example it doesn't account for buying power of $1 today versus $1 five years from now.)  

You could ask for an interest calculation on the 3.5% over the life of the loan(or however long you plan on keeping the home) versus doing the buy down, but over the life of the loan you will save a lot more with that buy down.

It is usually a completely different conversation for trying to purchase a commercial multifamily property versus purchasing a singe home from a distressed homeowner.

@Russell Brazil What would you say are the distinctive characteristics of a legit out of state buyer versus a not legit one?

It sounds like the condensate line might have been blocked which is an easy fix.Their last line about reimbursement leads me to believe they will be flexible and actually care about the place versus trying to get a new fridge just because.

Are you OK with learning the ropes with a market-value deal that you leave more money in it, versus a BRRRR deal that could be more costly than expected at the rehab or refinance phase?