A HELOC (or Prime Equity LOC to be semantically correct when it involves a rental as @Chris Martin has pointed out elsewhere) will have its adjustable interest rate pegged to either Treasury or LIBOR.

I have to assume that with the size of house I am building, there will be kids involved.

All of this is negotiated and spelled out in your operating agreement your attorney sets up.Expectations have to be clearly defined and agreed to UPFRONT as equitable for all involved.

Theoretically this can be done in one swift action, however, title companies are more and more unwilling to partake in anything but the most straight forward transactions.While most real estate buyers will demand title insurance, I, like many other experienced investors, have sold property directly to buyers without title insurance or title companies involved.

As we grow and things get a little more hectic I am contemplating some sort of assistant to help with marketing, daily tasks like phone calls, acquisitions, etc.

Jordan, there are a thousand ways or combinations to approach such projects, often under syndication, with tax credits granted, can be in a REIT or other structures, sole owners, affiliates and subsidiaries may be involved.

My net is significantly less due to numerous pre-tax expenses (Daycare FSA, Health FSA, retirement, etc etc) we gross around $56,000, a large difference from what I first posted.As far as SFH vs. multi-unit, I can certainly understand the desire for multi and the increased cash flow, however at the moment I don't feel we are up for the task.

I believe that there also will be some wholesaling involved, as I'd like to create a steady flow of income over time.

This presupposes the loan will sell for a discount and the discount will be suitable for two different parties to get involved and make some type of profit.

@Jacob Elbe "So if you and the seller come to an agreed price it doesn't matter what market value is.sorry I couldn't be more help"In a situation where unrelated parties are involved, you would be correct, FMV might not be the primary factor.