Therefore, you can deduct items that are directly related(repairs) to the rental units plus items paid indirectly for the rental units(think real estate taxes, interest, insurance).in addition - it looks like you are looking to use parts of the personal residence as a home office.Just note that, it would be hard to prove that you use 100% of the personal residence as a home office. 

He will be selling the properties to me for about 35k each and they will rent for anywhere from $600 to $800 a month on a 12-15 year note with the bank.With his knowledge and history in this market I feel that my mentor is steering me on the right direction and not setting me up for failure.

Whether that be helping with rehab, direct mail, searching for properties, etc.

Did you know that you can use that and/or a Self Directed IRA to invest DIRECTLY in real estate?

A Heloc payment is usually 1.5% of outstanding balance due monthly I'm not sure how much exchanging one revolving debt for another with similar debt service is really going to help DTI. is this what a lender directly told you or is this what you are assuming?

Ask them what they are doing and how theyare doing it.I do some direct marketing and I always am networking with newer and more advanced investors.

They have me paying them directly instead of the old landlord now. 

Podcast and books I read really confirmed that this was the right direction to move toward How did you find this deal and how did you negotiate it?

I got a local guy in DC that can point you in the right direction.

Not so much if you're representing a landlord or tenant unless at their direction.