Thanks to BP for the incredible amount of content available, I've learned so much since I stumbled onto this website a few months back and know it'll be an invaluable resource going forward!

It was only a general question, just to work out what amount coverage is worth having.Best wishes

I do it too, so no worries.Bottom line is with the quality and amount of free or cheap education available on the internet, there is NO reason you would ever need to spend $50K on a guru program. 

This section prescribes rules for tracing debt proceeds to specific expenditures.Treas Reg §1.163-8T(a)(4)Treatment of interest expense(i)General ruleExcept as otherwise provided in paragraph (m) of this section (relating to limitations on interest expense other than the passive loss and nonbusiness interest limitations), interest expense allocated under the rules of this section is treated in the following manner:(A) Interest expense allocated to a trade or business expenditure (as defined in paragraph (b)(7) of this section) is taken into account under section 163(h)(2)(A);(B) Interest expense allocated to a passive activity expenditure (as defined in paragraph (b)(4) of this section) or a former passive activity expenditure (as defined in paragraph (b)(2) of this section) is taken into account for purposes of section 469 in determining the income or loss from the activity to which such expenditure relates;(C) Interest expense allocated to an investment expenditure (as defined in paragraph (b)(3) of this section) is treated for purposes of section 163(d) as investment interest;(D) Interest expense allocated to a personal expenditure (as defined in paragraph (b)(5) of this section) is treated for purposes of section 163(h) as personal interest; and(E) Interest expense allocated to a portfolio expenditure (as defined in paragraph (b)(6) of this section) is treated for purposes of section 469(e)(2)(B)(ii) as interest expense described in section 469(e)(1)(A)(i)(III).Treas Reg §1.163-8T(c)(4)Allocation of debt; proceeds deposited in borrower's account(i)Treatment of depositFor purposes of this section, a deposit of debt proceeds in an account is treated as an investment expenditure, and amounts held in an account (whether or not interest bearing) are treated as property held for investment.

Interest due on that amount totals $4,447.84, resulting in a total due of $13,168.84"Honestly, this is beyond ridiculous. 

However, when you apply for a new mortgage the lender will have you fill out a Schedule of Real Estate Owned form that basically asks about any properties you already own along with any lien holders on those properties, balances owed, monthly payment amounts, etc (see below for what one of these forms looks like).  

We have worked directly with sellers where money was not their motivating factor and all they cared about was a minimum amount of headache. 

I would use whatever cash you can pull out to cover as much principal you can pay back on HELOC, but wouldn't go as far as paying off everything if you have to put significant amount of $ out of pocket. 

And then when should the partnership be restructured, after X deals, after X time, or after X amount is made? 

Please click on the links, give them a read, and share your thoughts in the comments.First is a post that I feel will help not get overwhelmed with the amount of info that is here on BP:https://www.biggerpockets.com/blogs/5868/52761-the-simple-guide-to-getting-started-on-bp The second is a post that will help get you focused with your real estate investing goals:https://www.biggerpockets.com/blogs/5868/52743-im-new-to-bp-any-advice-would-be-appriciatedThe last one is a post that will help you choose an “investor friendly” real estate agent.