The key is finding quality notes that are held by folks that are motivated to sell because they need cash.

Doing so places all involved parties at risk, and I fear will attract the attention of legislators thanks to those who do things carelessly.Instead, stay in the deal by closing on the purchase and selling with a wrap.

. $425k) to purchase a 12-unit Apartment ($1.5M) with 25% down ($375k from the HELOC).The remaining $50k from the HELOC could go into fixing/rehab of the 12-units.Then cash-refinance the larger amount from the 12-units to pay off the HELOC in one lump-sum (as much as possible), then using the cash flow from the apartment to pay off the rest of the HELOC.Repeat the process with a new apartment.1) Does this make sense? 

I will write a blog about the process once we close!

I'm not sure whether the bank is selling the property, but I suspect so. 

They've got a travel trailer sitting on the septic for the time being.When we reached out, owner simply said they needed to hold off on selling it until next year b/c they sold their primary residence this year.Don't know much about tax implications of selling primary residence in the same year as a rental.  

That would probably be post opening the bank account, post filing for an EIN, post selling membership shares to myself or others.

After living there 2 years, you can sell tax free on the gains. 

With the cash flow play you need to buy low, negotiate hard on price, expect no appreciation and get a very healthy cash flow, nothing marginal,  And expect when you sell to make little to no appreciation, then any gains are icing on the cake.

We have discussed selling the property and rolling it into a multi-family but again feel like we may be trading a fairly hands off property with good cash flow for one that may be a bit more labor intensive and only yield marginally better performance.Any advice on how to expand our rental portfolio/maximize its performance is greatly appreciated!