I vividly remember the countless hours spent driving to and from remote locations in rural Manitoba, alternating between early BP podcasts and Jim Rohn recordings.Over the next two years, I adopted an extremely frugal lifestyle, enabling me to achieve a 75% savings rate, sold my custom truck for a used Toyota, traded my new home in the burbs for a duplex (house-hack) in a challenging neighbourhood of Winnipeg where attempted break-ins were commonplace.

The biggest constraint on these communities is financing rate uncertainty.

A deal could look good at 7% interest rate with 25% down, but underperform at 7.5% and 30% down. 

He would be safer in a savings account at that rate (I know what you're thinking... appreciation, though).

Assume a 10% (pulled out of the air number) interest rate on the heloc.

They also claim that their property management fee is 10%, which is true as long as the unit is occupied, but if you factor in the first month rent payment for placing a tenant and a 5% vacancy rate (about once every two years) then the property management fee is closer to 15%. 

Im thinking of renting out my primary which will cashflow $650 (no management fee, self manage) because of low interest rate i got it for 2% which still has 2 years before rates renew. 

My questions are around taxation - i have read that if the rental is not associated with a us trade or business, then the gross income from the rental is taxed at 30%, however if associated with a us trade or business, then graduated rates apply, as well as the net is taxed and not the gross.

@Sebastian SoveroThere are 3 main parts to a seller financing deal: down payment, interest rate, and price (4th would be the term).

Borrowing from the equity must be done wisely or you will end up with negative cash flow and at high risk due to over-leveraging.NOTE: I use interest rates much lower than they currently are in 2024!