However, if some carrier is providing this type of coverage, then they better have very strict limitations on the coverage so claims don't get out of hand, or they probably won't be in business very long.

Very few people make it long-term.Tenant issues aside, renting in class D neighborhoods is financially not a very good concept.

To build long term wealth he can buy into REITs or syndications.

More importantly, you can't rely on ROI when going out that long.

By doing a rehab even cosmetics as long as it raises the value it will actually lowers your leverage.

I'm looking for an exit strategy , if I did decide to use my heloc to purchase the property cash any thoughts or suggestion on an exit strategy. or maybe something you did, My long term goal is always cash flow.

Hi Debbie - I can possibly do a second position loan against one or both of your rentals to help you cover the remaining expense so long as the property will not be owner occupied.

 - if you sell, your gains are tax exempt to a limit as long as you have resided in the property for at least 2 of the last 5 years. 

based on this its what ever you all agree to and are happy with.. as long as you get some cash and you record your DT or mortgage in first position and then have co bene's on the mort/dt / note then thats all you really need.. you all might want to talk to a decent CpA about this.

So, long story short.