If you are a DIY'er don't bite off more than you can chew on the rehab portion; it is definitely not as easy as it looks. 

Or you could offer them a free months rent if they would sign a new lease with terms stating that they would pay for a portion of utilities.

Some managers only work a certain portion of the city.

@James Masotti & @James Mercure I wanted to jump in here and talk about Airbnb. 90% of my clients use multi-family investments and put a portion of those units (1 unit in a triplex) as a vacation rental / Airbnb.

So you can use a portion of the HELOC for the down payment, another portion for repairs or another investment etc and do notneed to use it all upfront.

I am also from Bucks county originally, the lower portion though (Newtown/Yardley).   

So, if your income is $40k and your total gain on the sale is $150k, your income is $190k and you will be paying 15% federal tax on the portion of the gain that is considered long-term capital gain.California does not have lower tax rates for long-term capital gains - you will be taxed at your ordinary state tax rate at the state level.You normally pay tax upon filing but if the sale generates a requirement for you to make estimated tax payments, you should do that.

The problem is most investors use a portion of the equity for living expenses or vacations  etc. and end up bankrupt or losing it all in the next market downturn.

You can only deduct the business portion of your lease. 3.

We are still ironing out details, but as of now its looking like he will be loaning me half of the purchase price, we will split the profits 50/50 (after expense budgeting), and I will pay back the loan each month with a portion of my 50% profits.