Based on my experience, the better I plan it out, the less issues I faced in the field.

Typically HELOCs are used for short term purposes, so it would make more sense if you are doing a flip.

Hi BiggerPockets Community,I've got 200,000 earmarked for investment, and I'm looking to dive into the BRRRR, or the Fix and Flip strategies, My focus is rather on a few smaller properties in upstate New York—think Orange, Sullivan, Delaware, Ulster counties, and the scenic Borscht Belt,Any tips or recommendations?

For future years, we probably wouldn't meet the 500 hours test (though we still do participate a significant amount as we periodically re-stock supplies at the place, handle most maintenance issues due to shortage of workers in the town, and monitor sensors during guest stays - leak sensors/heat/stove).Specific Questions on Depreciation:Assuming that I have the qualifications for non-passive activity, I then have some questions on bonus depreciation and related stuff.5) It is my understanding that Qualified Improvement Property (QIP) bonus depreciation is probably not useful for me because I did most of the renovations prior to placing the property in-service (save for a few things).

Generally is going to be OK the only issue is that it can be challenging to confirm the transaction is truly arms-length on an off-market deal and I believe all DSCR Lenders do require Arms-Length transactions. 

One person might want to fix and flip it, and the other person might want to keep it.

You should have a general idea of this from your underwriting, whether it's a flip or a BRRRR

The owner attempted to fix the issue but tore up the drywall and couldn't locate the source of the leak.

Q2) Would there be an issue with this?

You could connect with those who have investor clients by looking for sold flips on the market and calling the listing agent or the buying agent if it's a fixer-upper.