Repayment terms do not meet TX requirements of "substantially equal successive periodic installments"HCLTV could exceed 80% max allowed in TX if they use ARV, rather than FMV when credit is extended.From this point on, the TX SML Investigator will do his thing, and we'll see where he takes it.

Are you sure that the price you are paying and the amount of rehab will equal 80% or less of the properties value?

Plenty of people will tell you to invest now, an equal amount will tell you pay off debt now.

------------------------------NUMBER ONE: There's no point in heavy-duty rehab unless you have an equalizer on your side.

If the two of you will be doing an equal amount of work and contributing an equal amount of cash, setting up an LLC with both of you as members is relatively simple and probably not necessary for an attorney to be involved. 

That would mean you are receiving a tax deduction equal to your ordinary tax rate (depreciation expense) plus preferential LTCG rates on that portion of the gain upon sale.Some not-so-bad depreciation recapture scenarios...The tax rate on the unrecaptured Section 1250 gain maxes out at 25%.

Once the debt is cleared, how will your cashflow equal the rent (both = $1195)? 

Just with everything in the world not all mgmt companies are created equal (unfortunately).

I did heloc, bought the next property and then paid off heloc when refinancingIt all equaled out in the end so not sure if I should’ve just started off with the refi, but the line of credit was nice because I didn’t know the exact amount I would need at the time Either way it worked out best of luck !

I missed this crucial component when I was starting out.