When my father died I inherited 25% of my fathers portion of my parents property at step up (mom disclaimed this portion) and my other brother inherited 25% at step ups as well (mom disclaimed this portion as well).

The beginning stages of BRRR go smoothly and I pull out 80K on the refinance portion.

My first tenants utilized a portion of trust fund to meet our rent:income ratio. 

The second year assuming the numbers stay the same you can depreciate only a portion of the house original value. 1/30th if I'm not mistaken which is 3.3% of the total cost or  about 15% of your gross income.

We did a complete gut job and had to completely tear down a portion of the house and rebuild it due to poor footing on a previous job.

I am interested in partnering with a plumber, electrician, HVAC, and general contractor and giving them each 10% ownership in each property in exchange for their work on the rehab portion of the strategy. 

@David Keller,The advantages of using a HELOC:Easy access to the moneyCan make a cash offerLower interest rates than HML or most private moneyVery low loan feesOnly pay interest on the portion of money you're usingDisadvantages of using a HELOC:Higher interest rate than a conventional loanShorter amortizationTied to your primary residence, so if things really go South your home may be in jeopardy (low risk, I think)One other thing to consider is that you may not be able to get financing on such an inexpensive property.

In addition, I'd be appealing to any insurance company and the state agency who regulates the insurance company to see if they are responsible to pay even a small portion of the damage that may have been caused by something that was covered, like fire or wind & hail, etc., not just flooding.    

A wholesaler who is consistent, well connected and able to run accurate calculations is invaluable.Though, wholesaling should only be portion of your strategy, if you choose to do it. 

The borrower provides 12 or 24 month's bank statement and the lender uses a portion of the deposits to qualify.