Within my REI business I have spreadsheets for each property to track direct costs and another for  general business expenses like education, office supplies, BP membership, etc that is allocated between the properties at tax time.

Of course, you could get a bank loan and use the HELOC as a downpayment, but you need to be careful the property still cash flows with that much debt attached to it (or allocated to in the case of the HELOC).

You can allocate your proceeds any way you like. 

Since I have not yet obtained a private loan on a property and dont understand it's mechanics, I have a question on a specific scenario I have been playing with: If a private loan is obtained and the down payment is payed for using a cash advance on a business line of credit, could you then turn around and do a cash out refi with a conventional loan, and specifically allocate that money so that you can pay off the business credit money and a large chunk of the private loan?

I mean do I consider it as a regular loan/mortgage and set a certain amortization period to be able to calculate monthly HELOC interest  payment, and allocate as % to the "principal payment"?  

Also for everyone else on this thread, I totally get that cash on cash return as a % would be maximized by allocating this money across multiple REIs.

Holdfolio is allocating all earnings on this portfolio until it is performing at 100% occupancy. 

After allocations for  property taxes and insurance, the underwriter calculates a Debt Service Coverage Ratio for the property, which is a key factor in the product’s pricing.

My wife and I have a very small nest egg set aside that is allocated for property aquisition, and that egg grows by the month, so we're not in any hurry.That said, like many other areas around the country, real estate prices are climbing and finding houses on the mls that meet our criteria seems to be going nowhere, which has me looking elsewhere.Looking through the bigger pockets marketplace, I see adds for a few turnkey companies,  and have gone so far as to email a couple in hopes of talking with them this week.

See below for how to do that.Step 4: Deduct as Schedule E rental expenses the allocable mortgage interest and property taxes from Step 3.Step 5: If there’s any net rental income left after Step 4, deduct as rental costs allocable indirect expenses — maintenance, utilities, association fees, insurance, depreciation and so forth on Schedule E — but only to the point where you zero out rental income.