The IRS example is for people using the HELOC to pay for non-income producing activities.The theory is that generating income typically generates more tax revenue for the government.

Does anyone know if this is possible and/or a lender in Philadelphia, PA that would consider this scenario:A personal (not business) HELOC for a Non-Occupant, Co-Applicant (or, if possible, sole applicant), Co-Owner (less than 12 mo on the deed)? 

The paperwork/deed/mortgage signed at closing for FHA/owner occupant financing explicitly states required occupancy within 60 days, for a minimum of 12 months occupancy before non-owner-occupying status, as Chris stated above.

Also from non collateralized debt to collateralized debt. 

Since the property is only $40k, you won't qualify for many loans which have 50k or 60K minimums.Find a non-emotional partner - with $$$.

If you were suddenly making the switch that nobody should do ANYTHING tax related in any manner other than in person or by post, then that was definitely not clear because that is not what Michael was talking about.It was a total non sequiter for Michael to be talking about CPA document sharing and you suddenly to be going to the entire tax filing process, but ok. 

So it's possibly better in the long run if you pay it off, save the non-deductible interest on any car loan, then keep it for 10-20 years and/or 200,000 - 400,00 miles. 

The non-remodeled units are only selling about $35k less than the remodeled units.  

My further research indicated that any deficit in return on original loan amount is considered a "non-business bad debt" treated as short-term capital loss, but foregone interest is excluded (because individuals operate on a cash basis). 

I would suggest using local non-national banks they are eaisier to work with and you can establish a relationship just going to use them regularly instead of just poking in one day asking for what they have for you.