HELOCs do have significantly lower closing costs but if you use one for the down payment, you will need to have a method of paying it back relatively quickly. 

The other unit is a 2/1 that was renting for $1,500 (fair market) and the owner lowered to $1,200 for the new tenants, and that rate is locked in for 2 years should they renew the lease. 

I am still waiting to hear back from my attorney for his thoughts, but ultimately feel I will not be able to go until November with the lowered rate, and will provide a timeline for the tenant to get to the terms of the lease.

So you could only receive $50k in your first 6 months of ownership since the LOWER amount is your purchase price.Example 2: If you purchased a home with $80k of cash, put $5k into the home, and the home was worth $100k. 75% would be $75k and your purchase price is $80k…so the lower amount is $75k.My example above does allow me to get 70% of the cost (70% because its Teri plex)immediately, once the renovation is completed (additional cost added to the Settlement statement ) without waiting 6 month. 

That %3 comes in handy when they know the price is getting lower and lower the longer the property stays on the market

@Lee Ripma: I am aiming at Seattle or Texas (a few areas), both have no income tax but Texas is obviously a much lower COL.

It is also true that the prices in the midwest is much lower compared here in Cali.

The IRS does not like shifting of income/expenses simply because the tax due to the IRS will be lower.

They got my taxes lowered, and it took minimal effort on my part.

My question:  From a purely real estate investment standpoint, is it better to buy something in the lower range that may have a bigger return on investment?