@Jason Breton @Dan Guenther @Ben Rhodin Even with a median list price of $545k in Denver, by leveraging the latest tax benefits, there is between $32k and $54k in Federal and state taxes that you can defer or eliminate in the first year you apply the tax benefits.

I'd also like extra cash as reserves to purchase an investment property in the near future.Question: Since I already have a great rate on my loan now, would it make more sense to apply for a HELOC and access the money as needed?

Most leases will contain something like this:If Lessee fails to pay Rent, or otherwise Defaults under this Lease, Lessor may use, apply or retain all or any portion of said Security Deposit for the payment of any amount due Lessor or to reimburse or compensate Lessor for any liability, expense, loss or damage which Lessor may suffer or incur by reason thereof.I would not expect to give it back in this case, because essentially they have broken the agreement, but again it depends on the language of the lease you've had them signed whether they are "entitled" to it or not.

Go pick up some Ortho fire ant killer for about 20 bucks and apply it to the ant mounds yourself, it works great.

Debt financing is applied after NOI is calculated.

There was apparently supposed to be a tax abatement applied to the property but it never was so my taxes are a lot higher than what was estimated at closing.

You can apply for a HELOC and sit tight while you look for another property.  

The market in Kentucky is not fundamentally different from anywhere else so the "70% rule" would still apply in general.

USDA loans only apply to rural areas, correct? 

@Caleb Webster - how familiar are you with any regulations that apply to a second home doing this same strategy?