(rent payment at fair market value.)Loan Payments: Ensure the rental income paid by the LLC is used for mortgage payments, clearly documenting the transactions to avoid co-mingling of funds.Insurance:Landlord Insurance: Obtain a landlord insurance policy for the rental portion of the home through the LLC.Homeowner's Insurance: Maintain a separate homeowner's insurance policy for my personal residence.

One thing I'd start with is what your personal strategy is, are you looking for cash flow up front, or long-term value after taxes?

I have quite a bit of equity in this house that is now valued just south of $180k however the thought of giving up my precious 2.75% rate for a HELOC makes my stomach turn.

More importantly, there no great bargains there…people are paying at or close to market value.

I will be willing to pay a bit more to know that I can get another piece of filler stock without waiting weeks.But since I dont live in the houses I built and rent, I am looking for the most value.  

For example, the properties I held for many years have increased in value, have given me cash flow, tax write offs, etc. 

This suggests strong demand and increasing property values, ideal for flipping investments.28304 also shows a demand for larger units (3-bedroom homes experiencing a 30.1% price increase), which supports flipping strategies that focus on providing more space at affordable prices.

My non-realtor friends in these places say that property values might actually be coming down right now.

I've thought about buying on the high end of what I could afford (in highly desirable areas) in the hopes the property values will climb.Should I forgo financing entirely and buy something "cheap" that I can pay in cash or take a minimal mortgage on?

The property may be "great value" but that's because of the lack of approved additions.