it makes for a very juicy internal rate of return.

So you are better off finding someone who wants to rean interest on their money and getting a promissory note signed and giving them a 10% interest rate and having them give you a 15k loan interés only for a 12-24 month period.

Jung,Welcome to the BP forum its a great time to start as mortgage rates fall and home prices still priced well in many states.

Fellow attorneys rate him 1.5 or 2.5 out of 5.  

I have other assets in Canada but I looking at bringing everything here when the exchange rate is better.

Just a heads up this will not be tax free, it will be a pro-rated exclusion.

I also wouldnt let your mom go into 2nd position on an investment property with any sort of restructuring; it doenst sound like she's in a position to risk being wiped out.Overall, though, if you want cashflow on the new property but cant achieve that after a refi into a market rate loan, it probably makes more sense to just flip it, pay off your heloc and your mom, and use the remaining capital for the next deal.

I've also held of holding properties in individual LLCs that are owned by one S corporation, which allows for a 60 / 40 split between ordinary income (regular tax) and dividends (capital gains tax rate).With the goal of minimizing taxation and liability protection, what would be the recommendation from more experienced people here?

I financed the deal with a conventional loan and bought down the rate from 7.75 to 6.25.

They are short term loans, usually 6-12 months, high rate, interest only payments.