just be cautious when it comes to using these. ensure you've got a plan to pay that balance back in a relatively quick fashion as most HELOC rates can fluctuate which could make the numbers suddenly not work. i've leveraged mine in instances where i'm doing a BRRR and i want the deposit for a private money loan. i'm not using it as my downpayment and leaving it out there for a long period of time. 

Your mentor has needs; try to meet them and develop a mutually beneficial relationship.A mentor can benefit your growth, but it's not as simple as one post on a forum full of strangers.

I think the answer likely falls in this: what does the market call for in that area and type of home, and what are successful PM companies doing to reduce vacancy rates? 

I'd recommend researching areas to see that they have:- Low unemployment- High demand for housing - relatively low inventory- local job creation/booming local economy- high avg/median income- increasing population- low average days-on-market (DOM)- history of rent and property value increases YOY- low crime- highly-rated schools (or above average)I'd compare the target neighborhood to surrounding neighborhoods and/or nearest metro areas. 

I would love to meet in persob for coffee or a round a golf, but happy to do phone call or zoom as well! 

@Heather Little short answer it depends.Longer answer: Section 469 requires that you meet both the 750 hours and more than 50% test (sounds like you are aware of this).

However, they may need to meet certain conditions and repay any remaining amount of the loan or use their remaining entitlement. 

-Safety and crime rates.

Minding and managing rates to ensure market competitiveness.2.

Once you have that figure, estimate the monthly payment and potential rental income to calculate your DSCR ratio, ensuring it meets your lender's requirements.