There are so many forum posts from OOS investors, especially in California, who rush into something in the midwest and then get crushed by capex - a foundation issue, a roof, etc.$100K is a lot to put into a random property in the midwest... and, as is a feature of real estate, the nicer the property you buy, the less you're going to cash flow.Hope this gives you some things to think about

Then pay off the heloc (if #3 is not a issue), because when you find your investment property you can just use the heloc again for the down payment. 

Also, some lenders allow a shorter seasoning period so that should not be an issue. 

The only issue is that I don't think I can qualify for the loan I would need to do that.

Would repairs support demand for rent at increased - considering you already have issues with rent payments on time?

As you noted in your original post if the loan was signed on or before June of 2016, there is no issue. 

If any issues with China or the Panama Canal become worse their prices will skyrocket back to $5,000. 

So there are two issues here. 

I really would like to know if you have ever had to litigate the issue or know of a case, you're relying on for your understanding of how the law would be applied?

Personally, as a matter of practicality, since they are allowable expenses I THINK the only issue the irs could take is just that its reported wrong, and you'd just apply it the way they want.