Best words of advice I can give about any subject...Learn ferociously for a short period of time (always with the intent of applying the knowledge), take a few of the concepts you learn into the real world on a small scale to actually feel it and gain confidence, make a plan with short and long term goals and then attack it.

His CPA suggested that he put the duplex in a LLC and sell me half of the LLC, so that he can get the 250,000 capital gain exemption since he has lived in one of the units 2 out of the last 5 years.

However, there are plenty of ways to make money buying such cheap property...it depends on who you ask but starting out I suggest going for an easier location to deal with and after  gaining some experience then toy with a more "challenging" area.

Please check out the links below to maybe gain some insight.A couple blogs on HELOCshttp://www.biggerpockets.com/renewsblog/2013/08/27...http://www.biggerpockets.com/renewsblog/2014/02/01...a couple forums on HELOCshttp://www.biggerpockets.com/forums/49/topics/212951-helochttp://www.biggerpockets.com/forums/48/topics/183065-helochttp://www.biggerpockets.com/forums/88/topics/144032-heloc

I can't cash out until May of 2016 to defer capital gains.

We really enjoy being landlords and have a goal of starting our own property management company in a few years, but first I plan to get my real estate broker license in order to gain some experience in the industry.

Option 1 -- Idea for this property - complete $5k worth of concrete work (necessary in the next year) then place on the market for sale - take equity and invest in other properties - more than likely will receive appx $100k cash after realtor commission and before capital gains tax if sold for $190KOption 2 - which I am pursuing and believe I can make happen - is open up a commercial Line of Credit for $75-85k (depends on appraisals by bank I'm working with)Also open up a line of credit for $25-30k (depends on appraisals) on my personal residence giving me appx $100k to work with as wellUse Lines of credit to either purchase properties below that require below $100k invested then refinance etc, or use lines of credit in conjunction with Portfolio lender I've used to purchase a project up to $300k or so (multi family, commercial etc)********************************************I also am 1/3 partner on another single family house that we redeemed last year, have just below $100k in with $58k owed on it, P&I pmt of $485 rents of $1495/moFor the most part completely reno'd this house so maintenance/upkeep costs should be very low - HVAC, H20 heater, less than 5 years old, fixed drainage issues etc.  

If you have investors that want to earn immediate gains then go find a property to flip.Then you can continue to look for new investors geared towards wanting an income stream as opposed to a relatively shorter term gain.Finding investors who trust you is hard enough and since it appears you may have you should consider altering your investment strategy to accommodate their needs and wants.

hahahaPoints taken Ben.But I am in a position where I have to 1031 forward gains from the sale of a CA 4 plex (closes tomorrow), so I have to choose from the "value add" local properties available and negotiate for the best Value Add deal that I can find.I hate/do not believe in property management companies, so I guess I will spend the next 10-15 years "working in" my business instead of "working on" my business. 

Hoping to gain a ton of knowledge from you all to get going!