Nevada has many of the draws of CA and the added benefits of low property taxes that don't assess on sale, landlord friendly, no state income tax, and multiple tech and manufacturing jobs like Tesla, Apple, Google in the area. 

Would it still make sense to open a business account through my llc to make the draws for the build, or does it really matter.

In terms of up and coming locations....If you drop a pin anywhere in Middle Tn it's going to be a "hot spot" in the near future if it already hasn't become one.

. - A $300k HELOC on the second home, at prime + 3% with a 20 year draw period.  

Quote from @Sean P.: In approx 18 months I intend to invest in multifamily as an active investor.

Also, currently, it's only set up to work with realtor.com so apply filters there and draw a polygon for your area.

Are there draw backs to it? 

Hi Ian,The best way to get this done is to refinance into a hard money rehab/construction loan.Not sure how much equity you have in the house but the ratio would be as following.75-80% * (Value of home+Cost of build/rehab) = Total Loan AmountWe would payoff the initial note (+ closing costs if loan amount exceeds construction budget & payoff), the rest would be in an escrow account for you to draw from as you complete your project.I would love to connect and discuss further on the details of this scenario!

The 5% is more of an industry rule of thumb, 10% is what I try to do, but I am more conservative and don't take any Distributions or Draws from my Real Estate.

Experience in real estate "dealing" so that when problems with the transaction occur, as they inevitably will, you can draw on your experience to "save" the deal.Enthusiasm is great; encouragement is great; but if it's all not based in reality its doomed to fail.