If you go this route I recommend you google "introductory HELOC Los Angeles" and there will be numerous banks and credit unions that will have an introductory offer of 2.99 or 3.99%.My recommendation is to reach out to a mortgage lender both here in Southern California and out of state (depending on where you want to invest) and determine how much you'll qualify for based on your current numbers.While it will be a process to get everything figured out the key is to take action. 

Detail in the lease the rental timeframe, with explanation of what happens after that timeframe (month to month for the same price, increased price, etc).

@Grant Rothenburger to be honest I'm not sure as there are a few established companies such as; Realty Mogul, PeerStreet and Fundrise that will most likely endure, however, there are other smaller companies that have either recently gotten into the space or are trying to get into the space and just won't make it based on today's margins.Don't get me wrong I think the real estate crowdfunding space will stick around and numerous companies will come out successful, however, the companies that are full of generalizations, estimations and marketing will close fairly quickly.Since I have very limited investments in this space I'm not sure which ones will consolidate and which ones will close in the near future.FYI, I have no affiliation with Realty Mogul, PeerStreet or Fundrise.

@Corey Mason thank you Corey for the detailed explanation!

You should read "Invest in Debt by Jimmy Napier" which explains the Time Value Money calculator(TVM).  10ii financial calculator is a great app you use from your phone.This link has a good explanation of how it goes. https://www.biggerpockets.com/forums/70/topics/109...Good luck and I hope this helps.

Creating numerous LLC's for a growing portfolio will eat up much of your margins at a minimum 800 dollar annual filing fee per LLC. 

@Christina MahesseThere's an old concept in tax called "risk of loss".I'm assuming this SFH/vacation house won't be rented out to simplify the explanation...Generally you would have to examine who is on the title and who is named on the loan.If it's one person, then generally speaking that one person can claim interest/taxes, etc to the extent allowed by statute. 

No one formula works because each situation is unique.For example, the value will be determined by these variables, as well as numerous others : likelihood that note can be made re performing, amount of time in default, owner occupied or not, stage of foreclosure, foreclosure laws of the state property is located in, if the debtor has filed bankruptcy, financial condition of debtor, whether or not there are any guarantors, type of area the property is located in, equity in the property, balance of the note, interest rate of note, default rate of interest, communications with borrower, residential or commercial, if residential was the note in compliance with Dodd Frank, did it pre date Dodd Frank, or was it an exempt note, note documentation, chain of title, availability of original documents, robo signed or individual signed, title insurance.

CAM is usually factored into the regular monthly payment.Capital improvements typically fall on the owner but again it all depends and I have seen it done and numerous ways.

@Lance Hummel welcome to Bigger Pockets,I see there has been numerous discussions on this topic, if you don't get a reply try the search function.