You just need to weigh the alternatives and evaluate the potential risk/return.  

And even then, that only defers the tax liability.With the craziness in the public markets, you could potentially tax loss harvest...At least be glad that you made money on it in 8mo. 

@Trevor ToftThe decision to use a HELOC on your primary residence for real estate investing involves considering various factors, and it's great that you're evaluating the potential outcomes.

While these methods have brought me to where I am, I believe there's more I can do to tap into a wider pool of potential buyers, especially those who are highly motivated and capable.Here are a few questions I have for the community:1.

Most tenants are happy to pay it because they understand a broken contract comes with penalties.My agreement requires them to participate in showings to potential renters during their final 30 days.

And there is no need to guess at it or pretend that Cash Flow has to be completely positive all the time.What I'm trying to do is to bring this horse (the Cash Flow Only crowd) to the water, but I cannot make them drink (educate yourself in the calculations so you don't have to be afraid of a negative cash flow).To me, if you buy based on either positive or negative current cash flow, then you are just not taking into account the true worth of your potential investment.

However, I'm not seeking advice on what to do with my current investments; I'm interested in advice assuming I just have the $165K and potential $100K/yr YoY. 

The advantage is that DSCR loans evaluate the property's income-generating potential rather than relying solely on your personal income, DTI, tax-returns.

For those asking about location, it'll be in the knoxville area (potentially smokies or adjacent mountain accessible areas) and will be doing several smaller 400-900 sq ft units (new builds) on a 5-10 acre lot, and I will be bringing the great styling, photography, marketing, and amenities :)  I was actually assuming worse vacancy in the beginning, but this is reaffirming my feeling that what is hurting is large and dated rentals. 

Any additional info about your experience with a recent conversion, unexpected cost, and potential timelines you would like to share would also be greatly welcomed!