@Andrew West  Just be wary that one key downside of mulitple HELOCs used for investing is the IRS prohibits you from deducting the HELOC interest payments. https://www.realtor.com/advice...

Ive seen this work well, as its not exactly clearly defined how long the IRS wants the holding period.

This is a potentially risky plan which may end up being challenged by the IRS.

It is my understanding I can then elect subchapter s taxation and the LLC will be deemed a disregarded entity by the IRS.

The IRS says that you are taking profit out. 

I wonder how the IRS and Obamacare would feel about my properties losing money year over year?

The advantage is after 10 years you can sell it without paying any capital gains tax, as long as the IRS doesn't know about it.

yes, i knew the work part. just wanted to understand the staying in it even if paying full price. not a deal breaker for me, just need to figure out where to roll my money into to use it The IRS says you cannot get personal benefit from the investments.

Be happy to hop on a call with you to discuss. 

Like yeah, the IRS really wants Walmart and Target gift cards over the phone in the next five minutes to cover your "unpaid" taxes.