The only constraint is that I'd like to see this replicated more frequently so that more of my extended family can take advantage of it and receive benefit out of it (both on the investment front as well as on the home ownership front). 

We currently receive  $1,000 in cashflow a month so it is not a total loss.After talking with some friends and other acquaintances about it, they said that I should sue.

I posted a quick intro last night and wanted to zero in on 2 specific questions with these goals in mind.1 Buy reasonably priced (aka cheap) condos to rent and receive some immediate cashflow likely out of state since the market we live in isn't conducive to cheap real estate.

Apply for heloc at 4.75% as my property received a tax appraisal of roughly $40k higher than my market price.

Excellent reputation, and will add a lot more weight to your offer than a credit union.Also if the property is in DC proper....frankly you have very little chance of getting an offer accepted with an inspection contingency.  

If your old loan was $400k and your new loan is only $300k you have essentially received taxable boot... 

Another development, he hasn't replied to me since this Wednesday and today sent me a text with another story apologizing for not responding and decided to send the $50 late fee (which I received).  

If you intend to hold as a rental, then you will pay capital gains rates as long as you hold more than a year.In your case though, a cash out refinance is not a sale.Because this is not a sale, but rather just a loan, you won't be taxed on the money you receive.

We have an AMAZING Director of Publishing, @Katie Askew , and she wants to continue to produce excellent books that you WANT to read!

Don't get caught down the road when a tenant moves out & you need to renovate but can't because you've only been receiving  $100-200 a month cash flow & don't have the money to renovate or refi.