If used to purchase investment properties those interest payments are tax deductible, you can replenish the HELOC, and you only need to cover the interest payments during the draw term.  

Deductible for insurance $5k. 

She does standard deductions and we get a $4-$8k refund every year, depreciation is a wonderful thing. 

A properly set-up DST will both protect your assets and bypass the burdensome franchise tax that would be levied against a Series LLC.Feel free to connect with me if you'd like to know more.

Would using the line of credit to start this be smart or not as I have heard the interest on that loan would not be tax deductible any longer unless used to improve your primary residence?

A properly set-up DST will both protect your assets and bypass the burdensome franchise tax that would be levied against a Series LLC.The Delaware Act expressly provides that “[n]o creditor of the beneficial owner shall have any right to obtain possession of, or otherwise exercise legal or equitable remedies with respect to, the property of the statutory trust.” 12 Del.

So you're earning $33k, but just those two deductions reduce that to $6k of yearly income, which is what you are taxed on.

That should qualify as a deductible donation.

NOTE 3: Your property taxes and property insurance have already been deducted from your gross operating income.If you divide your Net Operating Income $1,090  by your monthly mortgage payment of $858.91 you get a DSCR of 1.27. 

Whereas HELOC's aren't as readily deductible as they used to be, if you are using the HELOC to fund investment real estate purchases, then the HELOC is a business expense and deductible.