He'll be contracting out all the conversion work and the numbers make sense, with immediate positive cashflow.He's also going to be adding a new permanent RV/tiny house hookup as an extra cashflow source, essentially creating a "2.5-plex."

If so, you have essentially two options: grade the hill back gradually into the lawn and plant something on top of it (grass, groundcover, whatever) or put a new wall back in its place.

My goal is to essentially build an annuity and slowly piece together a portfolio with stable cashflow.  

It's essentially converting traditional contributions into Roth conversions and then being able to withdraw them after 5 years.

I personally think there's an underlying element going on in here but I digress.

(I won;t go into the limited exceptions here)  The CA legislators felt like it was unfair to the tenant to have disputes with the current landlord impair their right to get credit and future housing, so they made essentially sealed these cases from public view.This will have two impacts.  

Essentially it sounds like a very turn key program.Basically they buy the house and fix it up for your (of course at a price but if the numbers work, great).  

Plus larger apartment buildings are essentially like buying a business to me, the NOI is one of the major contributors when I value them. 

I agree with Matt, essentially using a HELOC to pay off debt is like you giving me a dollar in quarters and I give you back a dollar bill. 

If you give them money it is essentially a loan.