This is a combination lease, land contract, and take advantage of the seller/landlord offer from them. 

I am thinking that maybe I should combine first year's loss of 18~ with the down payment?? 

hi everyone i am a newbie and i have a question about a line of credit i want to take on my personal residence.i have around 650k equity on a million dollar home with 350k (mortgage + old line of credit combined). i wanted to take a new line of credit of about 500k to pay off the old mortgage and line of credit to be left with around 150k cash for some home improvements. i have been seeing rates around 5% but suntrust (link below) has an offer for 3.75% plus -.25% discount if paying from a suntrust account making the rate 3.5%.

When the lease expired, then moved out and we started renting short-term again.It is great to combine long-term stays with short-term stays.

Debt or equity?

Debt is not an indicator of what your tax liability would be.And yes, the way to alleviate that is to add a number to the BRRRR strategy - 1031. 

The presumption here is ZERO debt whatsoever.

Opinionated and throughly ignorant is a bad combination.

The last thing that comes to mind is a hybrid debt instrument but that could get a little tricky.You aren't going to get any legal advice on here so if you are legitimately concerned you will want to talk to an attorney about your specific concerns and they will let you know if you can structure around it.

@Clayton Hutton  A simpler way to do it may be to bring your friends on as debt investors and just give them a fixed return for the use of their money (more like a private money lender) instead of making them equity partners and giving them some percentage of the deal.