FHA is good due to the low down payment but the up front MI is very expensive.... in addition, you have to add .8 to your rate which is going to be your monthly MI so it will eat into your monthly profits; you cannot drop the MI, you would have to refinance to get rid of it. make sure you properly calculate the payment with all escrows and re-run you numbers...

This will probably add roughly 5-15K onto the balance of your loan.  

Using a line of credit is ok, if you are paying the LOC balance with property income.

I was just paying my statement balances to avoid interest charges, but when we started shopping for a new primary residence I heard about this strategy and began paying the current balance instead right before they reported and it made a noticeable difference since I my credit report now had near $0 on all my revolving credit.

See all the 0% balance transfer credit cards solicitation you get in the mail now days?

Also, you need to make sure you're setting seller's expectations properly.  

The reason I like the HELOC over the cash-out refinance is the HELOC pretty much acts like a credit card - you only pay (and accumulate interest) on your current balance.

Jim you keep doing these post like this and NO ONE is going to buy rentals ever again LOLbut seriously I like that you balance out all the blue sky and bring reality to the equation.buying rentals is not a set it and forget investment no matter what.can be with really special A class to strong B class but no way with blue collar 800 to 1000 dollar tenants.. don't care where how or what.. they are all people. some are pigs some are clean and neat some in the middle and you can't tell with an application .I suspect if you took the time to go check out their automobile before you rented to them.. or did a sneak pop in on where they are living now before they move into yours you might catch the pigs before they move into your freshly rehabbed home.

California properties sell almost instantly if priced properly and in good condition, Virginia may or may not but that is something you would want to look into.

The roof is a gable roof, and our inspector pointed out that the framing was not done properly.