Asking for $2mm for an asset that produces $18k in rent .... seems quite expensive.

Let's look at an example: An asset that produces $100k in NOI will be priced at $1,250,000 when CAP rates are 8. ($100k / .08) . 

It stops mold from producing spores and inhibits new growth.Ask the new neighbors about mold--if the sellers knew and the neighbors tell you that they knew, you may have a claim in that direction.Also, mold needs water/humidity to grow. 

I dont see a reason that a buyer would want to be on a list of someone that hasn't produced a deal yet.

@Prashant Sheth  If your Delaware LLC is owning income producing property in the state of Texas then it should register as a foreign LLC in the state of Texas.

If no, invest in the debt.However, you will want to define what out perform means to you..... becasue to some being debt free is far more valueable then additional debt even it's income producing.

The stock has the margin typically paid for by the stock appreciation reducing the net appreciation achieved by the investor.RE ideally produces positive cash flow but the stock may provide a dividend. 

Thanks for the comments, the HELOC is on an investment property that has a good cash flow that will almost cover the HELCO payments,,the purchased properties will produce a small positive cash flow,  My thinking now is not to go all in but use only half the funds,  I never considered if the lender will accept heloc funds as a down pmt,  Thanks again

$40k to produce $12k annually is a very good return (30% return). 

The rate itself can get high if you are working with significantly large amounts of IRA capital - but even then will apply to only a small fraction of the income produced by an IRA investment property that is debt-financed.