Hi @James Campbell, you don't need to tell the bank what the HELOC is for, so for what you stated, it can certainly serve that purpose. 

The duplexes in the area are more purpose-built and often have more space than the apartment-style units many think of.

I only spend that money on the "approved" expenses listed everywhere, same as on the link you included on your post.Acceptable purposes include working capital, paying fixed debts, payroll, accounts payable, and paying other bills that could have been paid. 

My SMLLC is also disregarded entity for tax purposes. 

What is the purpose of doing this and is it worth the pain and costs a refi is?

BTW, lenders count passive investing as "experience" for loan qualification purposes.

P.S. for information purposes, I am also not a realtor or attorney of any kind.

I wrote the above for informational purposes.

Michael...Using your example, we both know the journal entry that reflects the economics of the transaction is as follows:Debit Accounts Receivable: 9,000Debit Lease Commissions Expense: 1,000Credit Rent Revenue: 10,000You're arguing it doesn't matter because you're getting to the same place for federal income tax purposes...Okay. 

For the purposes of this Order, individuals may leave theirresidence to work for or obtain services at any "Essential Businesses," which for purposesofthis order means:xx111.